Integrated Waste Solutions Group Holdings (HKSE:00923) ROC % : -6.48% (As of Sep. 2024)

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What is Integrated Waste Solutions Group 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 %. Integrated Waste Solutions Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -6.48%.

As of today (2025-03-27), Integrated Waste Solutions Group Holdings's WACC % is 5.88%. Integrated Waste Solutions Group Holdings's ROC % is -6.80% (calculated using TTM income statement data). Integrated Waste Solutions Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Integrated Waste Solutions Group Holdings ROC % Historical Data

The historical data trend for Integrated Waste Solutions Group 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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Integrated Waste Solutions Group Holdings ROC % Chart

Integrated Waste Solutions Group Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-8.61

-4.54

-5.14

-5.29

-6.24

Integrated Waste Solutions Group Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-4.32	-6.36	-5.70	-7.03	-6.48

Integrated Waste Solutions Group Holdings ROC % Calculation

Integrated Waste Solutions Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-44.357 * ( 1 - 0% )	/	( (707.103	+	715.653)	/ 2 )
=	-44.357	/	711.378
=	-6.24 %

where

	Invested Capital		(A: Mar. 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	))
=	790.69	-	9.188	-	( 74.399	-	max(0, 13.569	-	131.122	+	74.399	))
=	707.103

	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	))
=	771.584	-	5.254	-	( 50.677	-	max(0, 10.795	-	83.223	+	50.677	))
=	715.653

Integrated Waste Solutions Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-45.564 * ( 1 - 0% )	/	( (715.653	+	689.975)	/ 2 )
=	-45.564	/	702.814
=	-6.48 %

where

	Invested Capital		(Q: 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	))
=	771.584	-	5.254	-	( 50.677	-	max(0, 10.795	-	83.223	+	50.677	))
=	715.653

	Invested Capital		(Q: Sep. 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	))
=	752.79	-	11.68	-	( 51.135	-	max(0, 11.68	-	101.836	+	51.135	))
=	689.975

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

Integrated Waste Solutions Group Holdings (HKSE:00923) 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, Integrated Waste Solutions Group Holdings's WACC % is 5.88%. Integrated Waste Solutions Group Holdings's ROC % is -6.80% (calculated using TTM income statement data). Integrated Waste Solutions Group 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.

Integrated Waste Solutions Group Holdings ROC % Related Terms

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Integrated Waste Solutions Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Integrated Waste Solutions Group Holdings Ltd (HKSE:00923) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Chun Cheong Street, Integrated Waste Solutions Building, Tseung Kwan O Industrial Estate, New Territories, Hong Kong, HKG

Website

https://www.iwsgh.com

Integrated Waste Solutions Group Holdings Ltd and its subsidiaries are engaged in the trading of recovered paper and materials, trading of tissue paper products, provision of confidential materials destruction services, and provision of logistics services. It has four operating business segments: Recovered paper and materials; Tissue paper products; Confidential materials destruction service (CMDS); and Logistics services. Geographically, it serves Hong Kong and Mainland China. The company derives the majority of its revenue from sales of Recovered paper and materials in Hong Kong.

Executives

Firstrate Enterprises Limited	2101 Beneficial owner
Wong Kim Pun	2201 Interest of corporation controlled by you
So Kit Yee Anita	2201 Interest of corporation controlled by you

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