Glorious Property Holdings (HKSE:00845) ROC % : 6.47% (As of Jun. 2024)

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What is Glorious Property 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 %. Glorious Property Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 6.47%.

As of today (2025-03-30), Glorious Property Holdings's WACC % is 10.47%. Glorious Property Holdings's ROC % is 2.25% (calculated using TTM income statement data). Glorious Property Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Glorious Property Holdings ROC % Historical Data

The historical data trend for Glorious Property 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.

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Glorious Property Holdings ROC % Chart

Glorious Property Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-1.99

0.03

-3.26

-1.41

0.81

Glorious Property Holdings 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															-0.29	3.79	-0.18	1.70	6.47

Glorious Property Holdings ROC % Calculation

Glorious Property Holdings'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 )
=	549.589 * ( 1 - 13.24% )	/	( (60513.718	+	57645.838)	/ 2 )
=	476.8234164	/	59079.778
=	0.81 %

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	))
=	54154.076	-	18985.115	-	( 80.698	-	max(0, 50884.965	-	25540.208	+	80.698	))
=	60513.718

	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	))
=	49032.016	-	17844.5	-	( 57.253	-	max(0, 49512.573	-	23054.251	+	57.253	))
=	57645.838

Glorious Property Holdings'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 )
=	1508.6 * ( 1 - -145.36% )	/	( (57645.838	+	56701.789)	/ 2 )
=	3701.50096	/	57173.8135
=	6.47 %

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	))
=	49032.016	-	17844.5	-	( 57.253	-	max(0, 49512.573	-	23054.251	+	57.253	))
=	57645.838

	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	))
=	47062.851	-	17048.138	-	( 44.345	-	max(0, 48172.693	-	21485.617	+	44.345	))
=	56701.789

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

Glorious Property Holdings (HKSE:00845) 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, Glorious Property Holdings's WACC % is 10.47%. Glorious Property Holdings's ROC % is 2.25% (calculated using TTM income statement data). Glorious Property 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.

Glorious Property Holdings ROC % Related Terms

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Glorious Property Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Glorious Property Holdings Ltd (HKSE:00845) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

50 Wing Tai Road, Room 807H, 8th Floor, Cornell Centre, Chai Wan, Hong Kong, HKG

Website

http://www.gloriousphl.com.cn

Glorious Property Holdings Ltd is a national property developer in China. It focuses on the development and sales of large-scale properties in key economic areas such as the Shanghai region, Yangtze River Delta, Pan Bohai Rim, and Northeast China. The firm develops residential and commercial properties and is also involved in property management. Its reportable operating segments, namely Shanghai Region, Yangtze River Delta (excluding Shanghai), Pan Bohai Rim, and Northeast China. The Others segment represents corporate support functions. The company generates maximum revenue from the Shanghai region.

Executives

Best Era International Limited	2101 Beneficial owner
Century Glory Assets Limited	2201 Interest of corporation controlled by you
Trident Trust Company Limited	2301 Trustee
Zhang Zhi Rong	2307 Founder of a discretionary trust who can infl

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