CA Cultural Technology Group (HKSE:01566) ROC % : -5.32% (As of Sep. 2023)

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

What is CA Cultural Technology Group 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 %. CA Cultural Technology Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -5.32%.

As of today (2024-06-12), CA Cultural Technology Group's WACC % is 8.72%. CA Cultural Technology Group's ROC % is -22.76% (calculated using TTM income statement data). CA Cultural Technology Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CA Cultural Technology Group ROC % Historical Data

The historical data trend for CA Cultural Technology Group'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.

CA Cultural Technology Group ROC % Chart

CA Cultural Technology Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

Get a 7-Day Free Trial

2.83

-6.21

4.73

-8.30

-35.77

CA Cultural Technology Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															0.45	-16.45	-30.05	-39.71	-5.32

CA Cultural Technology Group ROC % Calculation

CA Cultural Technology Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-463.517 * ( 1 - 2.26% )	/	( (1217.734	+	1315.498)	/ 2 )
=	-453.0415158	/	1266.616
=	-35.77 %

where

	Invested Capital		(A: Mar. 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	))
=	1181.108	-	206.342	-	( 21.794	-	max(0, 699.754	-	456.786	+	21.794	))
=	1217.734

	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	))
=	562.497	-	249.056	-	( 37.019	-	max(0, 1163.995	-	161.938	+	37.019	))
=	1315.498

CA Cultural Technology Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-71.998 * ( 1 - 4.44% )	/	( (1315.498	+	1272.61)	/ 2 )
=	-68.8012888	/	1294.054
=	-5.32 %

where

	Invested Capital		(Q: 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	))
=	562.497	-	249.056	-	( 37.019	-	max(0, 1163.995	-	161.938	+	37.019	))
=	1315.498

	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	))
=	473.873	-	286.31	-	( 26.623	-	max(0, 1208.608	-	123.561	+	26.623	))
=	1272.61

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

CA Cultural Technology Group (HKSE:01566) 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, CA Cultural Technology Group's WACC % is 8.72%. CA Cultural Technology Group's ROC % is -22.76% (calculated using TTM income statement data). CA Cultural Technology Group 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.

CA Cultural Technology Group ROC % Related Terms

Thank you for viewing the detailed overview of CA Cultural Technology Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

CA Cultural Technology Group (HKSE:01566) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » CA Cultural Technology Group Ltd (HKSE:01566) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 26 Harbour Road, Suites 2905, 29th Floor, China Resources Building, Wan Chai, Hong Kong, HKG

Website

https://www.animatechina.com

CA Cultural Technology Group Ltd is an investment holding company. The Company and its subsidiaries are engaged in the sales of animation derivative products, establishment and operation of indoor theme parks and multimedia animation entertainment in the PRC, Hong Kong and Japan. The company's reportable segment includes Sales of animation derivative products; Establishment and operation of indoor theme park CA SEGA JOYPOLIS brand; and Multimedia animation entertainment. It generates maximum revenue from the Establishment and operation of indoor theme parks segment.

Executives

Bright Rise Enterprises Limited	2101 Beneficial owner
Ikeda Shinichiro	2501 Other
Lee Sui Fong Fiona	2501 Other
Chong Heung Chung Jason	2201 Interest of corporation controlled by you
Bonville Glory Limited	2501 Other
Fortress Strength Limited	2501 Other
Dragon Year Group Limited	2501 Other
Ting Ka Fai Jeffrey	2501 Other
Newgate (ptc) Limited	2301 Trustee
East Jumbo Development Limited	2501 Other
Or Den Fung Bonnie	2501 Other
Fun Legend Limited	2101 Beneficial owner
Wang Xiu Hua	2101 Beneficial owner
Bloom Fort Limited	2101 Beneficial owner
Lo Yuk Yee	2201 Interest of corporation controlled by you

CA Cultural Technology Group (HKSE:01566) Headlines

No Headlines