AMCO United Holding (HKSE:00630) ROC % : -5.64% (As of Jun. 2024)

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What is AMCO United Holding 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 %. AMCO United Holding's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -5.64%.

As of today (2024-12-13), AMCO United Holding's WACC % is 6.37%. AMCO United Holding's ROC % is 13.98% (calculated using TTM income statement data). AMCO United Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

AMCO United Holding ROC % Historical Data

The historical data trend for AMCO United Holding'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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AMCO United Holding ROC % Chart

AMCO United Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-13.00

-5.56

-0.87

-11.51

1.36

AMCO United Holding 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															-29.00	15.82	-26.28	31.50	-5.64

AMCO United Holding ROC % Calculation

AMCO United Holding'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 )
=	0.775 * ( 1 - 0% )	/	( (61.921	+	51.711)	/ 2 )
=	0.775	/	56.816
=	1.36 %

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	))
=	172.84	-	71.168	-	( 39.751	-	max(0, 99.234	-	166.494	+	39.751	))
=	61.921

	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	))
=	168.718	-	63.823	-	( 53.184	-	max(0, 76.457	-	168.718	+	53.184	))
=	51.711

AMCO United Holding'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 )
=	-2.774 * ( 1 - 0% )	/	( (51.711	+	46.662)	/ 2 )
=	-2.774	/	49.1865
=	-5.64 %

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	))
=	168.718	-	63.823	-	( 53.184	-	max(0, 76.457	-	168.718	+	53.184	))
=	51.711

	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	))
=	133.53	-	56.961	-	( 29.907	-	max(0, 66.698	-	133.53	+	29.907	))
=	46.662

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

AMCO United Holding (HKSE:00630) 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, AMCO United Holding's WACC % is 6.37%. AMCO United Holding's ROC % is 13.98% (calculated using TTM income statement data). AMCO United Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

AMCO United Holding ROC % Related Terms

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AMCO United Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » AMCO United Holding Ltd (HKSE:00630) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

70 Queen’s Road Central, Unit 1104, Crawford House, Central, Hong Kong, HKG

Website

http://www.amco-united.com

AMCO United Holding Ltd is a Hong Kong-based investment holding company. The firm, through its subsidiaries, is principally engaged in the manufacture and sale of medical devices products; manufacture and sale of plastic moulding products; provision of construction services in building construction, building maintenance, and improvement work, project management, renovation, and decoration works; provision of money lending; and investment in securities. Its geographical segments are Asia Pacific, Europe, and North & South America, of which the majority of its revenue comes from Hong Kong.

Executives

Gong Hongwei	2101 Beneficial owner
Ireach Capital Fund	2102 Investment manager

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