Shanghai Industrial Urban Development Group (HKSE:00563) ROC % : 3.54% (As of Jun. 2024)

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What is Shanghai Industrial Urban Development Group 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 %. Shanghai Industrial Urban Development Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 3.54%.

As of today (2025-03-26), Shanghai Industrial Urban Development Group's WACC % is 1.69%. Shanghai Industrial Urban Development Group's ROC % is -4.82% (calculated using TTM income statement data). Shanghai Industrial Urban Development Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shanghai Industrial Urban Development Group ROC % Historical Data

The historical data trend for Shanghai Industrial Urban Development Group'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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Shanghai Industrial Urban Development Group ROC % Chart

Shanghai Industrial Urban Development Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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1.27

1.33

1.21

1.48

-4.90

Shanghai Industrial Urban Development Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															1.95	-10.65	4.24	3.54	-2.89

Shanghai Industrial Urban Development Group ROC % Calculation

Shanghai Industrial Urban Development Group'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 )
=	2735.297 * ( 1 - 73.55% )	/	( (49016.733	+	48509.655)	/ 2 )
=	723.4860565	/	48763.194
=	1.48 %

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	))
=	57446.787	-	5825.203	-	( 4483.182	-	max(0, 25994.672	-	28599.523	+	4483.182	))
=	49016.733

	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	))
=	59016.22	-	4520.654	-	( 5985.911	-	max(0, 20957.78	-	30242.584	+	5985.911	))
=	48509.655

Shanghai Industrial Urban Development Group'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 )
=	593.3 * ( 1 - -185.6% )	/	( (48509.655	+	47092.02)	/ 2 )
=	1694.4648	/	47800.8375
=	3.54 %

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	))
=	59016.22	-	4520.654	-	( 5985.911	-	max(0, 20957.78	-	30242.584	+	5985.911	))
=	48509.655

	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	))
=	56529.184	-	4074.457	-	( 5362.707	-	max(0, 20858.767	-	28042.595	+	5362.707	))
=	47092.02

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

Shanghai Industrial Urban Development Group (HKSE:00563) 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, Shanghai Industrial Urban Development Group's WACC % is 1.69%. Shanghai Industrial Urban Development Group's ROC % is -4.82% (calculated using TTM income statement data). Shanghai Industrial Urban Development Group 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.

Shanghai Industrial Urban Development Group ROC % Related Terms

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Shanghai Industrial Urban Development Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Shanghai Industrial Urban Development Group Ltd (HKSE:00563) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 5 Queen’s Road Central, 11th Floor, Henley Building, Hong Kong, HKG

Website

https://www.siud.com

Shanghai Industrial Urban Development Group Ltd serves its parent company, Shanghai Industrial Group, as an integrated real estate business platform operating in China. The group invests in real estate developments and operations in China. The group focuses its business on high-quality properties targeting urbanites and businesses. The company has projects in first, second, and third-tier cities. Some of the company's projects include high-end residential communities, office buildings, shopping arcades, hotels, and apartments. The company generates revenue from the sales of properties, rental income from the leasing of properties, service income from property management, and revenue from hotel operations. A majority of the company's revenue comes from the sale of properties in China.

Executives

Shanghai Industrial Investment (holdings) Company Limited
Shanghai Industrial Holdings Limited

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