DFIHY (DFI Retail Group Holdings) ROC % : 3.92% (As of Jun. 2024)

View and export this data going back to 2004. Start your Free Trial

What is DFI Retail Group 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 %. DFI Retail Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 3.92%.

As of today (2024-12-11), DFI Retail Group Holdings's WACC % is 6.46%. DFI Retail Group Holdings's ROC % is 2.19% (calculated using TTM income statement data). DFI Retail Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

DFI Retail Group Holdings ROC % Historical Data

The historical data trend for DFI Retail Group 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.

DFI Retail Group Holdings ROC % Chart

DFI Retail Group Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

4.13

3.63

2.40

4.38

0.96

DFI Retail Group Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															2.80	5.97	0.67	0.58	3.92

DFI Retail Group Holdings ROC % Calculation

DFI Retail Group 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 )
=	162.6 * ( 1 - 57.36% )	/	( (7350.1	+	7116.8)	/ 2 )
=	69.33264	/	7233.45
=	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	))
=	7326.3	-	2209.6	-	( 230.7	-	max(0, 3673.6	-	1440.2	+	230.7	))
=	7350.1

	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	))
=	7111.1	-	2135.6	-	( 303.4	-	max(0, 3527.4	-	1386.1	+	303.4	))
=	7116.8

DFI Retail Group 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: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	336.4 * ( 1 - 19.29% )	/	( (7116.8	+	6751.4)	/ 2 )
=	271.50844	/	6934.1
=	3.92 %

where

	Invested Capital		(Q: 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	))
=	7111.1	-	2135.6	-	( 303.4	-	max(0, 3527.4	-	1386.1	+	303.4	))
=	7116.8

	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	))
=	6674.9	-	1880.9	-	( 313.5	-	max(0, 3142.5	-	1185.1	+	313.5	))
=	6751.4

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

DFI Retail Group Holdings (OTCPK:DFIHY) 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, DFI Retail Group Holdings's WACC % is 6.46%. DFI Retail Group Holdings's ROC % is 2.19% (calculated using TTM income statement data). DFI Retail Group 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.

DFI Retail Group Holdings ROC % Related Terms

Thank you for viewing the detailed overview of DFI Retail Group Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

DFI Retail Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » DFI Retail Group Holdings Ltd (OTCPK:DFIHY) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

DFILF:USA D01:Singapore DFA1:Germany

Address

979 King’s Road, Quarry Bay, 11th Floor, P.O. Box 286, G.P.O, Devon House, Taikoo Place, Hong Kong, HKG

Website

https://www.dfiretailgroup.com

DFI Retail Group Holdings Ltd is an Asian retailer that operates in five segments: Food, Health and Beauty, Home Furnishings, Convenience, and Other Retailing. Food comprises grocery retail and convenience store businesses (including Yonghui, a grocery retailer in the Chinese mainland). Health and Beauty comprise the health and beauty businesses, Home Furnishings is the Group's IKEA business, and Other Retailing represents the department stores, specialty, and Do-It-Yourself (DIY) stores of the Group's Philippines associate, Robinsons Retail.