FRTCF (Far East Consortium International) ROC % : 0.89% (As of Mar. 2024)

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What is Far East Consortium International 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 %. Far East Consortium International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.89%.

As of today (2024-12-15), Far East Consortium International's WACC % is 3.26%. Far East Consortium International's ROC % is 1.44% (calculated using TTM income statement data). Far East Consortium International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Far East Consortium International ROC % Historical Data

The historical data trend for Far East Consortium International'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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Far East Consortium International ROC % Chart

Far East Consortium International Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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2.43

1.60

1.66

0.52

1.78

Far East Consortium International Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															1.67	0.04	2.62	0.89	2.85

Far East Consortium International ROC % Calculation

Far East Consortium International's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	132.961 * ( 1 - 23.01% )	/	( (6330.615	+	5201.438)	/ 2 )
=	102.3666739	/	5766.0265
=	1.78 %

where

	Invested Capital		(A: Mar. 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	))
=	6806.577	-	362.579	-	( 753.157	-	max(0, 3174.306	-	3287.689	+	753.157	))
=	6330.615

	Invested Capital		(A: 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	))
=	6041.326	-	338.654	-	( 501.234	-	max(0, 2064.647	-	2721.069	+	501.234	))
=	5201.438

Far East Consortium International's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	21.474 * ( 1 - -124.26% )	/	( (5588.016	+	5201.438)	/ 2 )
=	48.1575924	/	5394.727
=	0.89 %

where

	Invested Capital		(Q: Sep. 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	))
=	6232.424	-	398.182	-	( 520.211	-	max(0, 2419.909	-	2666.135	+	520.211	))
=	5588.016

	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	))
=	6041.326	-	338.654	-	( 501.234	-	max(0, 2064.647	-	2721.069	+	501.234	))
=	5201.438

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

Far East Consortium International (OTCPK:FRTCF) 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, Far East Consortium International's WACC % is 3.26%. Far East Consortium International's ROC % is 1.44% (calculated using TTM income statement data). Far East Consortium International 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.

Far East Consortium International ROC % Related Terms

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Far East Consortium International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Far East Consortium International Ltd (OTCPK:FRTCF) » Definitions » ROC %

Traded in Other Exchanges

00035:Hong Kong FET:Germany

Address

121 Des Voeux Road Central, 16th Floor, Far East Consortium Building, Hong Kong, HKG

Website

https://www.fecil.com.hk

Far East Consortium International Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Property development, Property investment, Hotel operations and management, Car park operations, Gaming operations, Securities and financial products, and Provision of mortgage services. It derives a majority of its revenue from the Property development segment which is engaged in developing and managing properties at various locations around the world. Geographically, the company derives maximum revenue from Australia and New Zealand and the rest from Hong Kong, Czech Republic, Malaysia, Singapore, the United Kingdom, Europe, and the People's Republic of China.