Ares Asia (HKSE:00645) ROC %: -46.67% (As of Sep. 2025)

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HKSE:00645 Ares Asia Ltd HKSE:00645
36 GF Score
Price HK$0.18
! 7 Warning Signs
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What is Ares Asia ROC %?

Ares Asia HKSE:00645 36 ROC % is -46.67% as of Sep. 2025. GuruFocus rates HKSE:00645 with a GF Score™ of 36/100. The stock has 7 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ares Asia's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was -46.67%.

As of today (2026-07-20), Ares Asia's WACC % is 11.85%. Ares Asia's ROC % is -42.54% (calculated using TTM income statement data). Ares Asia earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ares Asia  (HKSE:00645) 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, Ares Asia's WACC % is 11.85%. Ares Asia's ROC % is -42.54% (calculated using TTM income statement data). Ares Asia 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.

Ares Asia ROC % Related Terms

Ares Asia ROC % Historical Data

* Premium members only.

The historical data trend for Ares Asia'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.

Ares Asia ROC % Chart

Ares Asia Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.49 -6.93 -40.09 -93.13 -63.49

Ares Asia Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -41.87 -59.33 -51.60 -40.45 -46.67
HKSE:00645
36GF Score
Ares Asia Ltd HKSE:00645
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ares Asia ROC % Calculation

Ares Asia's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=-10.695 * ( 1 - 1.25% )/( (8.707 + 24.563)/ 2 )
=-10.5613125/16.635
=-63.49 %

where

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))
=61.199 - 3.536 - ( 48.956 - max(0, 6.767 - 60.949+48.956))
=8.707

Invested Capital(A: Mar. 2025 )
=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))
=39.867 - 0.536 - ( 14.768 - max(0, 3.793 - 38.126+14.768))
=24.563

Ares Asia's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=-11.21 * ( 1 - 0% )/( (24.563 + 23.479)/ 2 )
=-11.21/24.021
=-46.67 %

where

Invested Capital(Q: Mar. 2025 )
=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))
=39.867 - 0.536 - ( 14.768 - max(0, 3.793 - 38.126+14.768))
=24.563

Invested Capital(Q: Sep. 2025 )
=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))
=32.595 - 1.316 - ( 7.8 - max(0, 2.405 - 31.528+7.8))
=23.479

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -46.67% mean?
Ares Asia (HKSE:00645) has a ROC % of -46.67% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ares Asia and its competitors.
Is Ares Asia's ROC % too high?
Ares Asia's current ROC % is -46.67%. Overall, Ares Asia has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Ares Asia's ROC % compare to competitors?
Ares Asia's ROC % of -46.67% can be compared against companies in the Other Energy Sources industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Other Energy Sources company?
A good ROC % depends on the Other Energy Sources industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ares Asia and its competitors. Ares Asia's current ROC % is -46.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Asia stock overvalued right now?
Ares Asia (HKSE:00645) has a current ROC % of -46.67%. The current ROC % is -46.67%. Ares Asia's overall GF Score™ is 36/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Ares Asia (HKSE:00645), the current ROC % is -46.67% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Ares Asia Business Description

Address 1 Austin Road West, Unit No. 9608, Level 96, International Commerce Centre, Kowloon, Hong Kong, HKG
Ares Asia Ltd is an investment holding company. The group is principally engaged in the business of coal trading, entailing the selling of coal purchased from various countries to Mainland China and other commodities trading, which encompasses supply chain management and risk management service. Its business falls under the primary segment of Coal and other trading. Geographically, the group has a business presence in Mainland China, Hong Kong, and other countries, of which maximum revenue is derived from Mainland China.
36GF Score

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