Oriental Enterprise Holdings (HKSE:00018) ROC % : 4.31% (As of Mar. 2024)

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What is Oriental Enterprise 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 %. Oriental Enterprise Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.31%.

As of today (2024-09-23), Oriental Enterprise Holdings's WACC % is 5.30%. Oriental Enterprise Holdings's ROC % is 4.52% (calculated using TTM income statement data). Oriental Enterprise Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Oriental Enterprise Holdings ROC % Historical Data

The historical data trend for Oriental Enterprise 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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Oriental Enterprise Holdings ROC % Chart

Oriental Enterprise Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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5.36

10.71

10.90

9.68

4.92

Oriental Enterprise Holdings Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial															11.77	12.19	8.59	4.52	4.31

Oriental Enterprise Holdings ROC % Calculation

Oriental Enterprise Holdings'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 )
=	77.107 * ( 1 - 18.07% )	/	( (1191.714	+	1374.228)	/ 2 )
=	63.1737651	/	1282.971
=	4.92 %

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	))
=	1892.177	-	35.267	-	( 665.196	-	max(0, 86.163	-	1115.628	+	665.196	))
=	1191.714

	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	))
=	1956.771	-	21.606	-	( 560.937	-	max(0, 79.015	-	1216.846	+	560.937	))
=	1374.228

Oriental Enterprise Holdings'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 )
=	84.67 * ( 1 - 23.72% )	/	( (1623.007	+	1374.228)	/ 2 )
=	64.586276	/	1498.6175
=	4.31 %

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	))
=	1948.405	-	72.169	-	( 253.229	-	max(0, 128.388	-	1204.685	+	253.229	))
=	1623.007

	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	))
=	1956.771	-	21.606	-	( 560.937	-	max(0, 79.015	-	1216.846	+	560.937	))
=	1374.228

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

Oriental Enterprise Holdings (HKSE:00018) 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, Oriental Enterprise Holdings's WACC % is 5.30%. Oriental Enterprise Holdings's ROC % is 4.52% (calculated using TTM income statement data). Oriental Enterprise 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.

Oriental Enterprise Holdings ROC % Related Terms

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Oriental Enterprise Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Oriental Enterprise Holdings Ltd (HKSE:00018) » Definitions » ROC %

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Traded in Other Exchanges

OPQ:Germany

Address

23 Dai Cheong Street, Oriental Media Centre, Tai Po Industrial Estate, Hong Kong, HKG

Website

https://oeh.on.cc

Oriental Enterprise Holdings Ltd, formerly Oriental Press Group Ltd is a Hong Kong-based company engaged in the publication of newspapers including internet subscription and advertising income. The firm operates in the reportable segments of Publication of newspapers, Money lending business and Others. The Publication of newspapers segment, which acts as a major revenue earner, includes internet subscription and relevant advertising income. The revenue of other operating segments includes rental income from investment properties, license fee income from hotel property and income from restaurant operation. It has a geographic presence in Hong Kong and Australia.

Executives

Conyers Trustee Services (bvi) Limited	2301 Trustee
Marsun Holdings Limited	2201 Interest of corporation controlled by you
Ocean Greatness Limited	2201 Interest of corporation controlled by you
Ever Holdings Limited	2101 Beneficial owner
Hung Mui Fong	2202 Interest of your spouse
Ma Ching Fat	2307 Founder of a discretionary trust who can infl

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