Zhidao International (Holdings) (HKSE:01220) ROC %: -3.79% (As of Sep. 2024)

What is Zhidao International (Holdings) ROC %?

Zhidao International (Holdings) HKSE:01220 ROC % is -3.79% as of Sep. 2024.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zhidao International (Holdings)'s annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.79%.

As of today (2026-07-07), Zhidao International (Holdings)'s WACC % is 0.00%. Zhidao International (Holdings)'s ROC % is 0.00% (calculated using TTM income statement data). Zhidao International (Holdings) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zhidao International (Holdings) (HKSE:01220) 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, Zhidao International (Holdings)'s WACC % is 0.00%. Zhidao International (Holdings)'s ROC % is 0.00% (calculated using TTM income statement data). Zhidao International (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.

Zhidao International (Holdings) ROC % Related Terms

Zhidao International (Holdings) ROC % Historical Data

* Premium members only.

The historical data trend for Zhidao International (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.

Zhidao International (Holdings) ROC % Chart

Zhidao International (Holdings) Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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2.97

1.97

1.32

2.57

-9.18

Zhidao International (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															0.13	4.48	6.98	-27.69	-3.79

Zhidao International (Holdings) ROC % Calculation

Zhidao International (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 )
=	-23.814 * ( 1 - 0% )	/	( (326.929	+	192.081)	/ 2 )
=	-23.814	/	259.505
=	-9.18 %

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	))
=	409.219	-	46.837	-	( 35.453	-	max(0, 121.613	-	344.625	+	35.453	))
=	326.929

	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	))
=	308.472	-	102.118	-	( 14.273	-	max(0, 112.715	-	266.776	+	14.273	))
=	192.081

Zhidao International (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 )
=	-7.172 * ( 1 - 0% )	/	( (192.081	+	186.526)	/ 2 )
=	-7.172	/	189.3035
=	-3.79 %

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	))
=	308.472	-	102.118	-	( 14.273	-	max(0, 112.715	-	266.776	+	14.273	))
=	192.081

	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	))
=	298.069	-	99.201	-	( 12.342	-	max(0, 106.699	-	275.743	+	12.342	))
=	186.526

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -3.79% mean?

Zhidao International (Holdings) (HKSE:01220) has a ROC % of -3.79% as of Sep. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zhidao International (Holdings) and its competitors.

Is Zhidao International (Holdings)'s ROC % too high?

Zhidao International (Holdings)'s current ROC % is -3.79%.

How does Zhidao International (Holdings)'s ROC % compare to AA?

Zhidao International (Holdings)'s ROC % of -3.79% can be compared against companies in the Metals & Mining 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 a Metals & Mining company?

A good ROC % depends on the Metals & Mining 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 Zhidao International (Holdings) and its competitors. Zhidao International (Holdings)'s current ROC % is -3.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Zhidao International (Holdings) stock overvalued right now?

Zhidao International (Holdings) (HKSE:01220) has a current ROC % of -3.79%. The current ROC % is -3.79%. 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 Zhidao International (Holdings) (HKSE:01220), the current ROC % is -3.79% as of Sep. 2024. 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.

Zhidao International (Holdings) Business Description

Industry Basic Materials Metals & Mining

Comparable Companies HKSE:02078 HKSE:01378 SHSE:601600 NSE:HINDALCO OSL:NHY XKLS:8869 SZSE:000807 AA SHSE:600219 SZSE:002532 MIC:RUAL SZSE:000933 BOM:532234 HKSE:02610 BAH:ALBH SHSE:600595 SZSE:002379 SHSE:600361 SHSE:601702 WAR:KTY

Address 302-308 Hennessy Road, Room 2606, 26th Floor, C C Wu Building, Wan Chai, Hong Kong, HKG

Website http://www.zdihl.com

Zhidao International (Holdings) Ltd trades and supplies aluminum products. Its segments include trading of aluminum products, construction projects, and money lending. The company generates maximum revenue from the construction projects segment. The construction projects segment includes a supply of aluminum products in construction projects and an extension to the provision of construction and engineering services. Geographically, it derives a majority of its revenue from Macau.