Golden Eagle Retail Group (Golden Eagle Retail Group) ROC % : 6.46% (As of Jun. 2023)

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What is Golden Eagle Retail Group 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 %. Golden Eagle Retail Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 6.46%.

As of today (2024-05-19), Golden Eagle Retail Group's WACC % is 7.82%. Golden Eagle Retail Group's ROC % is 5.66% (calculated using TTM income statement data). Golden Eagle Retail Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Golden Eagle Retail Group ROC % Historical Data

The historical data trend for Golden Eagle Retail Group'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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Golden Eagle Retail Group ROC % Chart

Golden Eagle Retail Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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6.96

8.45

8.06

8.48

5.63

Golden Eagle Retail Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial															9.12	8.64	6.42	4.69	6.46

Golden Eagle Retail Group ROC % Calculation

Golden Eagle Retail Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	288.677 * ( 1 - 44.18% )	/	( (2821.335	+	2907.209)	/ 2 )
=	161.1395014	/	2864.272
=	5.63 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	3919.14	-	727.428	-	( 1215.567	-	max(0, 1363.877	-	1734.254	+	1215.567	))
=	2821.335

	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	))
=	3679.449	-	568.188	-	( 1148.035	-	max(0, 1541.841	-	1745.893	+	1148.035	))
=	2907.209

Golden Eagle Retail Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	287.028 * ( 1 - 33.06% )	/	( (2907.209	+	3036.99)	/ 2 )
=	192.1365432	/	2972.0995
=	6.46 %

where

	Invested Capital		(Q: 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	))
=	3679.449	-	568.188	-	( 1148.035	-	max(0, 1541.841	-	1745.893	+	1148.035	))
=	2907.209

	Invested Capital		(Q: Jun. 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	))
=	3485.879	-	571.97	-	( 1158.371	-	max(0, 1778.155	-	1655.074	+	1158.371	))
=	3036.99

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Golden Eagle Retail Group (OTCPK:GDNEF) 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, Golden Eagle Retail Group's WACC % is 7.82%. Golden Eagle Retail Group's ROC % is 5.66% (calculated using TTM income statement data). Golden Eagle Retail Group 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.

Golden Eagle Retail Group ROC % Related Terms

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Golden Eagle Retail Group (Golden Eagle Retail Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Golden Eagle Retail Group Ltd (OTCPK:GDNEF) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 888 Yingtian Street, 17th Floor, Block A, Golden Eagle World, Jianye District, Nanjing, CHN

Website

http://www.geretail.com

Golden Eagle Retail Group Ltd is principally engaged in the development and operation of department stores in China. Targeting the mid-to-high end market, the company's stores are primarily located in four provinces and one municipality, including Jiangsu, Anhui, Shaanxi, Yunnan, and Shanghai. In addition to the core function as a department store chain, the company's stores also provide other functions and amenities, such as dining, entertainment, beauty, and personal care, cinemas, and preschool education. Specifically, for the company's stores, the majority of the total gross floor area is located in self-owned properties.

Golden Eagle Retail Group (Golden Eagle Retail Group) Headlines

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