Xinhua News Media Holdings (HKSE:00309) ROC % : -15.02% (As of Sep. 2024)

View and export this data going back to 2003. Start your Free Trial

What is Xinhua News 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 %. Xinhua News Media Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -15.02%.

As of today (2025-04-11), Xinhua News Media Holdings's WACC % is 3.37%. Xinhua News Media Holdings's ROC % is -19.45% (calculated using TTM income statement data). Xinhua News Media Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xinhua News Media Holdings ROC % Historical Data

The historical data trend for Xinhua News 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.

* Premium members only.

Xinhua News Media Holdings ROC % Chart

Xinhua News Media Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

-17.20

-32.99

-17.19

-23.25

-22.99

Xinhua News Media Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-22.41	-26.60	-23.84	-25.29	-15.02

Xinhua News Media Holdings ROC % Calculation

Xinhua News Media 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 )
=	-16.022 * ( 1 - 0% )	/	( (79.232	+	60.124)	/ 2 )
=	-16.022	/	69.678
=	-22.99 %

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	))
=	175.797	-	26.44	-	( 70.125	-	max(0, 66.168	-	139.951	+	70.125	))
=	79.232

	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	))
=	161.737	-	29.806	-	( 71.807	-	max(0, 68.39	-	146.835	+	71.807	))
=	60.124

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

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-10.196 * ( 1 - 0% )	/	( (60.124	+	75.686)	/ 2 )
=	-10.196	/	67.905
=	-15.02 %

where

	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	))
=	161.737	-	29.806	-	( 71.807	-	max(0, 68.39	-	146.835	+	71.807	))
=	60.124

	Invested Capital		(Q: Sep. 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	))
=	163.611	-	31.4	-	( 56.525	-	max(0, 75.437	-	153.615	+	56.525	))
=	75.686

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

Xinhua News Media Holdings (HKSE:00309) 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, Xinhua News Media Holdings's WACC % is 3.37%. Xinhua News Media Holdings's ROC % is -19.45% (calculated using TTM income statement data). Xinhua News 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.

Xinhua News Media Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Xinhua News Media Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Xinhua News Media Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Xinhua News Media Holdings Ltd (HKSE:00309) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9 Science Museum Road, Unit 508B, 5/F, New East Ocean Centre, Tsim Sha Tsui, Kowloon, Hong Kong, HKG

Website

https://www.xhnmedia.com

Xinhua News Media Holdings Ltd is engaged in the business of the provision of cleaning and related services and the provision of medical waste treatment services. It has operating segments as follows: Cleaning and Related Services segment engages in the provision of cleaning and related services; Advertising media business segment engages in the provision of media strategy; Waste Treatment business segment engages in the provision of organic waste treatment. The group operates in Hong Kong and China, of which prime revenue is derived from Hong Kong.

Executives

Yu Weikun
Tsui Kwok Hing	2202 Interest of your spouse
Chen Ming	2101 Beneficial owner
Wki Partners (holdings) Limited	2101 Beneficial owner
Zheng Xian Deng	2101 Beneficial owner

Xinhua News Media Holdings Headlines

No Headlines