Meta Media Holdings (HKSE:00072) ROC % : -6.28% (As of Jun. 2024)

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What is Meta Media 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 %. Meta Media Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -6.28%.

As of today (2024-12-12), Meta Media Holdings's WACC % is 3.39%. Meta Media Holdings's ROC % is -3.07% (calculated using TTM income statement data). Meta Media Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Meta Media Holdings ROC % Historical Data

The historical data trend for Meta Media 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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Meta Media Holdings ROC % Chart

Meta Media Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-6.41

-11.46

2.65

-10.34

-2.99

Meta Media Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-3.39	-17.94	-5.57	0.17	-6.28

Meta Media Holdings ROC % Calculation

Meta Media Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-15.92 * ( 1 - -10% )	/	( (609.526	+	561.317)	/ 2 )
=	-17.512	/	585.4215
=	-2.99 %

where

	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	))
=	800.327	-	145.204	-	( 45.597	-	max(0, 365.936	-	435.378	+	45.597	))
=	609.526

	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	))
=	741	-	152.266	-	( 39.295	-	max(0, 352.46	-	379.877	+	39.295	))
=	561.317

Meta Media Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-32.018 * ( 1 - -4.5% )	/	( (561.317	+	504.475)	/ 2 )
=	-33.45881	/	532.896
=	-6.28 %

where

	Invested Capital		(Q: 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	))
=	741	-	152.266	-	( 39.295	-	max(0, 352.46	-	379.877	+	39.295	))
=	561.317

	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	))
=	649.232	-	126.029	-	( 35.425	-	max(0, 326.116	-	344.844	+	35.425	))
=	504.475

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

Meta Media Holdings (HKSE:00072) 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, Meta Media Holdings's WACC % is 3.39%. Meta Media Holdings's ROC % is -3.07% (calculated using TTM income statement data). Meta Media 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.

Meta Media Holdings ROC % Related Terms

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Meta Media Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Meta Media Holdings Ltd (HKSE:00072) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Number 1 Software Park Road, Units 213, 2nd Floor, Block 2, Exhibition Centre, Guangdong Province, Zhuhai, CHN

Website

https://www.metamediahldg.com

Meta Media Holdings Ltd is an investment holding company principally engaged in media businesses. It operates through two segments. The Art platform segment contributes the majority of the firm's revenue and is engaged in the sales of advertising spaces in magazines, the publication, and distribution of its magazines and periodicals, artwork trading, an auction, as well as art exhibition and education. The Digital platform segment is engaged in the publication of digital media products and sales of advertising spaces through a digital media platform, as well as the production of customized content for brand advertisers. The company operates in China, Hong Kong, and the United Kingdom, out of which China accounts for the majority of its revenue.

Executives

Zhou Shao-min	2202 Interest of your spouse
Shao Zhong	2101 Beneficial owner

Meta Media Holdings Headlines

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