China Tianbao Group Development Co (HKSE:01427) ROC % : 0.41% (As of Jun. 2024)

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What is China Tianbao Group Development 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 Tianbao Group Development Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.41%.

As of today (2025-01-18), China Tianbao Group Development Co's WACC % is 0.09%. China Tianbao Group Development Co's ROC % is -4.40% (calculated using TTM income statement data). China Tianbao Group Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Tianbao Group Development Co ROC % Historical Data

The historical data trend for China Tianbao Group Development 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 Tianbao Group Development Co ROC % Chart

China Tianbao Group Development Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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8.52

12.54

5.58

1.62

0.89

China Tianbao Group Development Co Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial									7.54	0.52	1.43	0.79	0.41

China Tianbao Group Development Co ROC % Calculation

China Tianbao Group Development Co'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 )
=	111.038 * ( 1 - 75.18% )	/	( (3038.668	+	3170.674)	/ 2 )
=	27.5596316	/	3104.671
=	0.89 %

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	))
=	7006.067	-	3718.398	-	( 249.001	-	max(0, 5575.722	-	6178.521	+	249.001	))
=	3038.668

	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	))
=	6638.285	-	3648.11	-	( 205.547	-	max(0, 4947.415	-	4766.916	+	205.547	))
=	3170.674

China Tianbao Group Development 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 )
=	10.556 * ( 1 - -17.09% )	/	( (3170.674	+	2811.302)	/ 2 )
=	12.3600204	/	2990.988
=	0.41 %

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	))
=	6638.285	-	3648.11	-	( 205.547	-	max(0, 4947.415	-	4766.916	+	205.547	))
=	3170.674

	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	))
=	6791.948	-	4193.667	-	( 389.22	-	max(0, 5157.197	-	4944.176	+	389.22	))
=	2811.302

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

China Tianbao Group Development Co (HKSE:01427) 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 Tianbao Group Development Co's WACC % is 0.09%. China Tianbao Group Development Co's ROC % is -4.40% (calculated using TTM income statement data). China Tianbao Group Development 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 Tianbao Group Development Co ROC % Related Terms

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China Tianbao Group Development Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » China Tianbao Group Development Co Ltd (HKSE:01427) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 33, Guanyun East Road, Hebei Province, Zhuozhou, CHN

Website

http://www.chinatbjt.com

China Tianbao Group Development Co Ltd is a property developer and construction company in Zhuozhou, a city in Hebei Province, China. The group operates through two segments: Property development and other business; and construction contracting businesses. The property development business is engaged in the development and sales of residential properties, and leasing and operation of an investment property. The construction contracting business provides construction contracting services mainly as a general contractor for building construction projects, infrastructure construction projects, and industrial and commercial construction projects.

Executives

Ai Xinting	2101 Beneficial owner
Jixiang International Industrial Company Limited	2101 Beneficial owner
Li Baotian	2201 Interest of corporation controlled by you
Zhou Chunlan	2202 Interest of your spouse

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