Global Engine Group Holding (Global Engine Group Holding) ROC % : 0.00% (As of Dec. 2022)

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What is Global Engine Group Holding 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 %. Global Engine Group Holding's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was 0.00%.

As of today (2024-06-20), Global Engine Group Holding's WACC % is 0.00%. Global Engine Group Holding's ROC % is 0.00% (calculated using TTM income statement data). Global Engine Group Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global Engine Group Holding ROC % Historical Data

The historical data trend for Global Engine Group Holding'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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Global Engine Group Holding ROC % Chart

Global Engine Group Holding Annual Data

Trend

Jun20

Jun21

Jun22

ROC %

65.24

118.52

86.24

Global Engine Group Holding Quarterly Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROC %	Get a 7-Day Free Trial			-	-	-	-	-

Global Engine Group Holding ROC % Calculation

Global Engine Group Holding's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	1.206 * ( 1 - 14.12% )	/	( (0.918	+	1.484)	/ 2 )
=	1.0357128	/	1.201
=	86.24 %

where

	Invested Capital		(A: Jun. 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	))
=	1.44	-	0.297	-	( 0.225	-	max(0, 1.152	-	1.439	+	0.225	))
=	0.918

	Invested Capital		(A: Jun. 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	))
=	2.197	-	0.203	-	( 0.766	-	max(0, 1.016	-	1.526	+	0.766	))
=	1.484

Global Engine Group Holding's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	0 * ( 1 - % )	/	( (1.484	+	1.505)	/ 2 )
=	0	/	1.4945
=	0.00 %

where

	Invested Capital		(Q: Jun. 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	))
=	2.197	-	0.203	-	( 0.766	-	max(0, 1.016	-	1.526	+	0.766	))
=	1.484

	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	))
=	3.91	-	1.849	-	( 0.556	-	max(0, 2.528	-	3.125	+	0.556	))
=	1.505

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) data.

Global Engine Group Holding (NAS:GLE) 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, Global Engine Group Holding's WACC % is 0.00%. Global Engine Group Holding's ROC % is 0.00% (calculated using TTM income statement data). Global Engine Group Holding 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.

Global Engine Group Holding ROC % Related Terms

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Global Engine Group Holding (Global Engine Group Holding) Business Description

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Address

Website

Global Engine Group Holding Ltd offers integrated solutions by using ICT solutions to drive business outcomes and innovation. It serves primarily as a holding company for its operating subsidiary, Global Engine Limited. Its service offerings comprise services to telecom operators, including the one-stop shop purchase from telecom license application service to turnkey network setup as well as service outsourcing; business planning, development, technical and operations consulting programs structured to target the cloud computing and data center providers; system design, planning, development and operation services to technology companies; cloud platform deployment, IT system design and configuration services, maintenance services, data center colocation service and cloud service.

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