Japan Kyosei Group Co (HKSE:00627) ROC % : -5.63% (As of Jun. 2024)

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What is Japan Kyosei Group Co 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 %. Japan Kyosei Group Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -5.63%.

As of today (2025-03-29), Japan Kyosei Group Co's WACC % is 24.49%. Japan Kyosei Group Co's ROC % is -5.42% (calculated using TTM income statement data). Japan Kyosei Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Japan Kyosei Group Co ROC % Historical Data

The historical data trend for Japan Kyosei Group Co'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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Japan Kyosei Group Co ROC % Chart

Japan Kyosei Group Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.04

-4.43

1.85

-6.18

-7.13

Japan Kyosei Group Co Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-5.91	-7.35	-6.36	-5.88	-5.63

Japan Kyosei Group Co ROC % Calculation

Japan Kyosei Group Co'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 )
=	-328.244 * ( 1 - -1.65% )	/	( (6248.042	+	3117.786)	/ 2 )
=	-333.660026	/	4682.914
=	-7.13 %

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	))
=	9434.17	-	3521.836	-	( 230.225	-	max(0, 8840.608	-	8504.9	+	230.225	))
=	6248.042

	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	))
=	7268.04	-	5426.333	-	( 48.138	-	max(0, 7864.99	-	6588.911	+	48.138	))
=	3117.786

Japan Kyosei Group Co'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 )
=	-182.608 * ( 1 - 6.14% )	/	( (3117.786	+	2967.663)	/ 2 )
=	-171.3958688	/	3042.7245
=	-5.63 %

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	))
=	7268.04	-	5426.333	-	( 48.138	-	max(0, 7864.99	-	6588.911	+	48.138	))
=	3117.786

	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	))
=	6884.445	-	5548.844	-	( 54.358	-	max(0, 7849.485	-	6217.423	+	54.358	))
=	2967.663

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

Japan Kyosei Group Co (HKSE:00627) 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, Japan Kyosei Group Co's WACC % is 24.49%. Japan Kyosei Group Co's ROC % is -5.42% (calculated using TTM income statement data). Japan Kyosei Group Co 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.

Japan Kyosei Group Co ROC % Related Terms

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Japan Kyosei Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Japan Kyosei Group Co Ltd (HKSE:00627) » Definitions » ROC %

Traded in Other Exchanges

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Address

No. 66-72 Stanley Street, Room 1104, 11th Floor, Kai Tak Commercial Building, Central, Hong Kong, HKG

Website

http://www.jkgc.com.hk

Japan Kyosei Group Co Ltd is engaged in the development and sale of properties and property investment in the People's Republic of China and Hong Kong, focusing on developing the mid-range to high-end real estate sector. The operating business segments are Property development and Property investment. The Property Development segment develops and sells commercial and residential properties in the People's Republic of China and Hong Kong. The Property Investment segment is engaged in the leasing of investment properties in the People's Republic of China and Hong Kong. The Property development segment derives maximum revenue for the company.

Executives

Grateful Heart Inc.	2201 Interest of corporation controlled by you
Kenichi Yanase	2201 Interest of corporation controlled by you
Cis Fund Ofc - Cis Opportunities I Fund	2201 Interest of corporation controlled by you
Cis Securities Asset Management Limited	2102 Investment manager
Jet Power Investments Limited	2101 Beneficial owner
Zheng Jiaying	2202 Interest of your spouse
Pan Haoran	2201 Interest of corporation controlled by you
Hong Kunsen	2201 Interest of corporation controlled by you
Tongda Enterprises Limited	2101 Beneficial owner

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