ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Karrie International Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 14.11%.
As of today (2025-03-02), Karrie International Holdings's WACC % is 6.52%. Karrie International Holdings's ROC % is 14.33% (calculated using TTM income statement data).
Karrie International Holdings 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.
Karrie International Holdings ROC % Historical Data
* 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.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 2024) data.
* 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.
Karrie International Holdings (HKSE:01050) 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, Karrie International Holdings's WACC % is 6.52%. Karrie International Holdings's ROC % is 14.33% (calculated using TTM income statement data).
Karrie International Holdings 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.
Karrie International Holdings ROC % Related Terms
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Karrie International Holdings Business Description
Karrie International Holdings Ltd is an investment holding company. The group is principally engaged in the manufacturing and selling of metal and plastic products. It is organized into two main operating segments; Metal and Plastic Business, and Electronic Manufacturing Services Business. The majority of its revenue is derived from the Metal and Plastic Business segment which provides services like metal stamping, plastic injection, and mould design and production among others. Geographically, it derives maximum revenue from Hong Kong and also has a presence in Japan; Mainland China, Asia (excluding Japan, Hong Kong, and Mainland China); North America, and Western Europe.
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