GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Kwan On Holdings Ltd (HKSE:01559) » Definitions » ROC %

Kwan On Holdings (HKSE:01559) ROC % : -57.53% (As of Mar. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Kwan On 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 %. Kwan On Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -57.53%.

As of today (2024-12-13), Kwan On Holdings's WACC % is 9.60%. Kwan On Holdings's ROC % is -34.71% (calculated using TTM income statement data). Kwan On Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Kwan On Holdings ROC % Historical Data

The historical data trend for Kwan On 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.

* Premium members only.

Kwan On Holdings ROC % Chart

Kwan On Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.86 -4.10 -11.68 -11.15 -38.36

Kwan On 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.32 -6.02 -16.43 -57.53 -13.85

Kwan On Holdings ROC % Calculation

Kwan On 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 )
=-169.249 * ( 1 - 3.36% )/( (619.553 + 233.175)/ 2 )
=-163.5622336/426.364
=-38.36 %

where

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))
=650.736 - 391.026 - ( 26.535 - max(0, 516.204 - 593.764+26.535))
=233.175

Kwan On Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-244.82 * ( 1 - 5.89% )/( (567.774 + 233.175)/ 2 )
=-230.400102/400.4745
=-57.53 %

where

Invested Capital(Q: Sep. 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))
=846.208 - 245.558 - ( 32.876 - max(0, 562.002 - 782.57+32.876))
=567.774

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))
=650.736 - 391.026 - ( 26.535 - max(0, 516.204 - 593.764+26.535))
=233.175

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


Kwan On Holdings  (HKSE:01559) 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, Kwan On Holdings's WACC % is 9.60%. Kwan On Holdings's ROC % is -34.71% (calculated using TTM income statement data). Kwan On 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.


Kwan On Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Kwan On Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kwan On Holdings Business Description

Traded in Other Exchanges
N/A
Address
118 Connaught Road West, Unit 3401, 28th Floor, Room 2803, Sai Ying Pun, Hong Kong, HKG
Kwan On Holdings Ltd is mainly engaged in construction-related business and property development. The company's reportable segments include Construction, Property development, and trading. Geographically the company derives the majority of its revenue from Hong Kong.
Executives
Chen Zhenghua 2201 Interest of corporation controlled by you
Sino Coronet Group Limited 2101 Beneficial owner
Lv Di Kong Gu Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Lv Di Kong Gu Ji Tuan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Sheng Jian Zhu Gong Cheng Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Hua Yuan Tou Zi Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Lv Di Da Ji Jian Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Gorgeous Holding Limited 2201 Interest of corporation controlled by you
New York Private Trust Company 2201 Interest of corporation controlled by you
Rosy Height Holdings Limited 2101 Beneficial owner

Kwan On Holdings Headlines

No Headlines