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Landsea Green Management (HKSE:00106) ROC % : -2.03% (As of Jun. 2024)


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What is Landsea Green Management 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 %. Landsea Green Management's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -2.03%.

As of today (2024-12-14), Landsea Green Management's WACC % is 2.94%. Landsea Green Management's ROC % is -5.56% (calculated using TTM income statement data). Landsea Green Management earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Landsea Green Management ROC % Historical Data

The historical data trend for Landsea Green Management'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.

* Premium members only.

Landsea Green Management ROC % Chart

Landsea Green Management Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.17 0.25 -0.78 -2.30 -3.94

Landsea Green Management 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.89 -12.54 -0.07 -8.63 -2.03

Landsea Green Management ROC % Calculation

Landsea Green Management'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 )
=-441.837 * ( 1 - -4.86% )/( (12266.896 + 11255.72)/ 2 )
=-463.3102782/11761.308
=-3.94 %

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))
=22319.545 - 8654.46 - ( 1398.189 - max(0, 12097.25 - 16949.896+1398.189))
=12266.896

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))
=21168.543 - 8831.993 - ( 1080.83 - max(0, 12451.908 - 15728.208+1080.83))
=11255.72

Landsea Green Management'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 )
=-209.396 * ( 1 - -0.23% )/( (11255.72 + 9465.887)/ 2 )
=-209.8776108/10360.8035
=-2.03 %

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))
=21168.543 - 8831.993 - ( 1080.83 - max(0, 12451.908 - 15728.208+1080.83))
=11255.72

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))
=11212.203 - 7180.027 - ( 194.171 - max(0, 10823.173 - 5389.462+194.171))
=9465.887

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

* 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.


Landsea Green Management  (HKSE:00106) 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, Landsea Green Management's WACC % is 2.94%. Landsea Green Management's ROC % is -5.56% (calculated using TTM income statement data). Landsea Green Management 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.


Landsea Green Management ROC % Related Terms

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Landsea Green Management Business Description

Traded in Other Exchanges
N/A
Address
8 Queen’s Road East, Unit 406, 4th Floor, Wan Chai, Hong Kong, HKG
Landsea Green Management Ltd is an investment holding company. It is principally engaged in development and sales of properties, provision of management services and leasing of properties. The company's segments include Property development and sales in US; Property development and sales in Mainland China; Management services; and Office property investment. It derives majority of revenue from Property development and sales in US segment. Geographically it operates in Mainland China, USA, and Hong Kong.
Executives
Tian Ming 2201 Interest of corporation controlled by you
Landsea Group Co., Ltd. 2201 Interest of corporation controlled by you
Landsea International Holdings Limited 2201 Interest of corporation controlled by you
Greensheid Corporation 2101 Beneficial owner
Nan Jing Ding Zhong Tou Zi Guan Li Gu Wen You Xian Gong Si 2201 Interest of corporation controlled by you
Tian Family Investment Pte. Ltd. 2101 Beneficial owner
Tian Family Holding Pte. Ltd. 2201 Interest of corporation controlled by you
Chen Huaijun 2201 Interest of corporation controlled by you
Lucky Front Investments Limited 2101 Beneficial owner
Ting Wang 2101 Beneficial owner
Hong Kong Newdawn International Co., Limited 2101 Beneficial owner
Nan Jing Shi Guo You Zi Chan Tou Zi Guan Li Kong Gu Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Nan Jing Fang Zhi Pin Jin Chu Kou Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Nan Jing Lv You Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Nan Jing Shi Cheng Shi Jian She Tou Zi Kong Gu Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you

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