Shenzhen International Holdings (HKSE:00152) ROC % : 1.55% (As of Jun. 2024)

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What is Shenzhen International 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 %. Shenzhen International Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 1.55%.

As of today (2024-12-15), Shenzhen International Holdings's WACC % is 4.08%. Shenzhen International Holdings's ROC % is 2.63% (calculated using TTM income statement data). Shenzhen International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shenzhen International Holdings ROC % Historical Data

The historical data trend for Shenzhen International 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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Shenzhen International Holdings ROC % Chart

Shenzhen International Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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6.76

4.03

2.36

1.49

2.54

Shenzhen International 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															2.16	0.95	1.54	3.59	1.55

Shenzhen International Holdings ROC % Calculation

Shenzhen International 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 )
=	6307.867 * ( 1 - 44.07% )	/	( (140546.087	+	137263.636)	/ 2 )
=	3527.9900131	/	138904.8615
=	2.54 %

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	))
=	133494.925	-	11056.26	-	( 14053.385	-	max(0, 48584.419	-	30476.997	+	14053.385	))
=	140546.087

	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	))
=	130494.541	-	14796.445	-	( 9781.751	-	max(0, 42009.073	-	20443.533	+	9781.751	))
=	137263.636

Shenzhen International 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 )
=	2476.822 * ( 1 - 15.71% )	/	( (137263.636	+	131759.644)	/ 2 )
=	2087.7132638	/	134511.64
=	1.55 %

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	))
=	130494.541	-	14796.445	-	( 9781.751	-	max(0, 42009.073	-	20443.533	+	9781.751	))
=	137263.636

	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	))
=	127667.172	-	13257.397	-	( 9552.986	-	max(0, 37748.667	-	20398.798	+	9552.986	))
=	131759.644

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

Shenzhen International Holdings (HKSE:00152) 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, Shenzhen International Holdings's WACC % is 4.08%. Shenzhen International Holdings's ROC % is 2.63% (calculated using TTM income statement data). Shenzhen International 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.

Shenzhen International Holdings ROC % Related Terms

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Shenzhen International Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Shenzhen International Holdings Ltd (HKSE:00152) » Definitions » ROC %

Traded in Other Exchanges

SZIHF:USA SXYA:Germany

Address

No.1 Science Museum Road, Rooms 2206-2208, 22nd Floor, Greenfield Tower, Concordia Plaza, Tsimshatsui East, Kowloon, Hong Kong, HKG

Website

https://www.szihl.com

Shenzhen International Holdings Ltd is a Chinese investment company which constructs and operates logistic infrastructure facilities. The company operates through two main segments: Toll roads and general-environmental protection business and Logistics business. Toll roads, which contributes the vast majority of revenue, develops, operates, and manages tolls roads. The logistics business constructs, operates, and manages logistics centers and integrated logistics hubs; provides third party logistic services, logistic information services, and financial services to customers; and offers port and related services. The controlling shareholder, Shenzhen Investment Holdings Company Limited, is wholly-owned by the Chinese government.

Executives

Li An Ren Shou Bao Xian Gu Fen You Xian Gong Si	2101 Beneficial owner
Ubs Group Ag	2201 Interest of corporation controlled by you
Shen Zhen Shi Tou Zi Kong Gu You Xian Gong Si	2201 Interest of corporation controlled by you
Citigroup Inc.	2201 Interest of corporation controlled by you

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