CARCY (China Resources Building Materials Technology Holdings) ROC % : 1.12% (As of Jun. 2024)

View and export this data going back to 2010. Start your Free Trial

What is China Resources Building Materials Technology Holdings ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Resources Building Materials Technology Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 1.12%.

As of today (2024-12-12), China Resources Building Materials Technology Holdings's WACC % is 6.65%. China Resources Building Materials Technology Holdings's ROC % is 0.72% (calculated using TTM income statement data). China Resources Building Materials Technology Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Resources Building Materials Technology Holdings ROC % Historical Data

The historical data trend for China Resources Building Materials Technology Holdings's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

China Resources Building Materials Technology Holdings ROC % Chart

China Resources Building Materials Technology Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

17.77

16.49

11.13

2.22

0.96

China Resources Building Materials Technology Holdings Quarterly Data
	Dec16	Jun17	Sep17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-0.14	1.08	2.05	1.12	0.90

China Resources Building Materials Technology Holdings ROC % Calculation

China Resources Building Materials Technology Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	138.368 * ( 1 - 32.31% )	/	( (9863.428	+	9644.888)	/ 2 )
=	93.6612992	/	9754.158
=	0.96 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10306.803	-	1146.226	-	( 279.541	-	max(0, 1961.235	-	1258.384	+	279.541	))
=	9863.428

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10194.706	-	1010.543	-	( 364.649	-	max(0, 1537.763	-	1077.038	+	364.649	))
=	9644.888

China Resources Building Materials Technology Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	154.42 * ( 1 - 28.15% )	/	( (0	+	9867.924)	/ 1 )
=	110.95077	/	9867.924
=	1.12 %

where

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10009.278	-	874.378	-	( 153.776	-	max(0, 1773.324	-	1040.3	+	153.776	))
=	9867.924

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

China Resources Building Materials Technology Holdings (OTCPK:CARCY) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, China Resources Building Materials Technology Holdings's WACC % is 6.65%. China Resources Building Materials Technology Holdings's ROC % is 0.72% (calculated using TTM income statement data). China Resources Building Materials Technology Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

China Resources Building Materials Technology Holdings ROC % Related Terms

Thank you for viewing the detailed overview of China Resources Building Materials Technology Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

China Resources Building Materials Technology Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » China Resources Building Materials Technology Holdings Ltd (OTCPK:CARCY) » Definitions » ROC %

Traded in Other Exchanges

CJRCF:USA 01313:Hong Kong C44:Germany

Address

26 Harbour Road, Room 3001-05, China Resources Building, Wanchai, Hong Kong, HKG

Website

https://www.crcement.com

China Resources Building Materials, or CRBM, mainly engages in the production and sale of cement, clinker, and concrete in Southern China. The company was established in 2003, with parent company China Resources Group holding 68% of its total equity stake. While cement and clinker products have been the largest contributors to CRBM's earnings historically, the firm has actively forayed into related sectors such as aggregates and engineered stones in recent years. Its major customers include real estate and infrastructure builders in provinces such as Guangdong, Guangxi, and Fujian.