The Place Holdings (FRA:95N) ROC % : -5.23% (As of Dec. 2024)

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What is The Place 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 %. The Place Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -5.23%.

As of today (2025-03-18), The Place Holdings's WACC % is 9.88%. The Place Holdings's ROC % is -5.26% (calculated using TTM income statement data). The Place Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Place Holdings ROC % Historical Data

The historical data trend for The Place 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.

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The Place Holdings ROC % Chart

The Place Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-1.86

-2.31

-1.71

-2.09

-5.25

The Place Holdings Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															-2.03	-2.72	0.46	-5.41	-5.23

The Place Holdings ROC % Calculation

The Place Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-2.668 * ( 1 - -8.66% )	/	( (0	+	55.206)	/ 1 )
=	-2.8990488	/	55.206
=	-5.25 %

where

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(A: Dec. 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	))
=	67.578	-	3.151	-	( 9.221	-	max(0, 4.453	-	49.043	+	9.221	))
=	55.206

The Place Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-2.684 * ( 1 - -5.78% )	/	( (53.45	+	55.206)	/ 2 )
=	-2.8391352	/	54.328
=	-5.23 %

where

	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	))
=	66.65	-	3.091	-	( 10.109	-	max(0, 4.256	-	48.824	+	10.109	))
=	53.45

	Invested Capital		(Q: Dec. 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	))
=	67.578	-	3.151	-	( 9.221	-	max(0, 4.453	-	49.043	+	9.221	))
=	55.206

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

The Place Holdings (FRA:95N) 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, The Place Holdings's WACC % is 9.88%. The Place Holdings's ROC % is -5.26% (calculated using TTM income statement data). The Place 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.

The Place Holdings ROC % Related Terms

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The Place Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Place Holdings Ltd (FRA:95N) » Definitions » ROC %

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E27:Singapore

Address

6 Battery Road, No. 21-01, Singapore, SGP, 049909

Website

https://www.theplaceholdings.com

The Place Holdings Ltd is an investment holding company that invests in develops and manages media-related businesses. It manages various cultural events and activities; and focuses on the provision of branding strategy, planning, and organizing of corporate events, exhibitions, and other events. It also engages in the development and operation of integrated tourism business including the development of commercial malls, hotels, entertainment and recreation facilities, resorts, corporate clubhouses, and wellness resorts for the elderly. In addition, the firm invests in a new retail business. It operates in two segments Media and event management and Property development. The Media and event management accounts for all of the firm's revenue.

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