China Health Technology Group Holding Co (HKSE:01069) ROC % : -21.44% (As of Jun. 2024)

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What is China Health Technology Group Holding Co 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 %. China Health Technology Group Holding Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -21.44%.

As of today (2025-03-13), China Health Technology Group Holding Co's WACC % is 2.23%. China Health Technology Group Holding Co's ROC % is -14.49% (calculated using TTM income statement data). China Health Technology Group Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Health Technology Group Holding Co ROC % Historical Data

The historical data trend for China Health Technology Group Holding Co'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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China Health Technology Group Holding Co ROC % Chart

China Health Technology Group Holding Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Jun22

Jun23

Jun24

ROC %

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0.83

-6.15

-2.19

-2.21

-6.45

China Health Technology Group Holding Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															-0.43	-3.95	-3.45	-21.44	-8.19

China Health Technology Group Holding Co ROC % Calculation

China Health Technology Group Holding Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-22.603 * ( 1 - 0% )	/	( (526.667	+	174.699)	/ 2 )
=	-22.603	/	350.683
=	-6.45 %

where

	Invested Capital		(A: Jun. 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	))
=	153.833	-	86.853	-	( 4.733	-	max(0, 484.429	-	24.742	+	4.733	))
=	526.667

	Invested Capital		(A: 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	))
=	191.803	-	19.25	-	( 3.477	-	max(0, 53.09	-	50.944	+	3.477	))
=	174.699

China Health Technology Group Holding Co'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 )
=	-33.84 * ( 1 - -0.33% )	/	( (141.994	+	174.699)	/ 2 )
=	-33.951672	/	158.3465
=	-21.44 %

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	))
=	154.702	-	11.054	-	( 1.654	-	max(0, 15.949	-	20.957	+	1.654	))
=	141.994

	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	))
=	191.803	-	19.25	-	( 3.477	-	max(0, 53.09	-	50.944	+	3.477	))
=	174.699

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

China Health Technology Group Holding Co (HKSE:01069) 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, China Health Technology Group Holding Co's WACC % is 2.23%. China Health Technology Group Holding Co's ROC % is -14.49% (calculated using TTM income statement data). China Health Technology Group Holding Co 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.

China Health Technology Group Holding Co ROC % Related Terms

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China Health Technology Group Holding Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » China Health Technology Group Holding Co Ltd (HKSE:01069) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Binhe Road South, Room 4101, Phase II Jingji Binhe Shidai Tower North, Futian District, Shenzhen, CHN

Website

http://www.caflc.co

China Health Technology Group Holding Co Ltd Formerly China Bozza Development Holdings Ltd is an investment holding company. It is engaged in the business of management of new agriculture and forestry resources in the People's Republic of China. The company has two reportable segments including the Forestry business; Horny Goat Weed Business; and Ginseng Business. The forestry management business includes plantation, logging, and sale of timber-related products and the Ginseng Business includes ginseng plantation and trading of related products. The company generates a majority of its revenue from the Forestry business segment. Geographically company generates its key revenue from the PRC.

Executives

Huang Hou	2201 Interest of corporation controlled by you
Huang Hou	2101 Beneficial owner
Able Planet International Limited
China Bozza Scheme Limited
Arab Osman Mohammed
Lai Wing Lun
Wang Yue	2101 Beneficial owner
Long Yijia	2202 Interest of your spouse

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