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COFCO Joycome Foods (HKSE:01610) ROC % : -4.06% (As of Jun. 2024)


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What is COFCO Joycome Foods 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 %. COFCO Joycome Foods's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -4.06%.

As of today (2024-12-14), COFCO Joycome Foods's WACC % is 7.51%. COFCO Joycome Foods's ROC % is -0.18% (calculated using TTM income statement data). COFCO Joycome Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.


COFCO Joycome Foods ROC % Historical Data

The historical data trend for COFCO Joycome Foods'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.

COFCO Joycome Foods ROC % Chart

COFCO Joycome Foods Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.01 -4.48 2,333.30 -4.85 3.30

COFCO Joycome Foods Semi-Annual Data
Dec13 Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -11.14 -3.34 3.49 3.85 -4.06

COFCO Joycome Foods ROC % Calculation

COFCO Joycome Foods'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 )
=662.522 * ( 1 - 3.63% )/( (20806.105 + 17865.29)/ 2 )
=638.4724514/19335.6975
=3.30 %

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))
=20541.261 - 1837.112 - ( 1161.419 - max(0, 10347.525 - 8245.569+1161.419))
=20806.105

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))
=17752.394 - 1129.004 - ( 1278.95 - max(0, 6843.097 - 5601.197+1278.95))
=17865.29

COFCO Joycome Foods'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 )
=-724.008 * ( 1 - 0.76% )/( (17865.29 + 17549.98)/ 2 )
=-718.5055392/17707.635
=-4.06 %

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))
=17752.394 - 1129.004 - ( 1278.95 - max(0, 6843.097 - 5601.197+1278.95))
=17865.29

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))
=18343.308 - 1400.064 - ( 545.69 - max(0, 6474.947 - 5868.211+545.69))
=17549.98

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


COFCO Joycome Foods  (HKSE:01610) 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, COFCO Joycome Foods's WACC % is 7.51%. COFCO Joycome Foods's ROC % is -0.18% (calculated using TTM income statement data). COFCO Joycome Foods 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.


COFCO Joycome Foods ROC % Related Terms

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COFCO Joycome Foods Business Description

Traded in Other Exchanges
Address
No.8, Chao Yang Men South Street, COFCO Fortune Plaza, Chao Yang District, Beijing, CHN
COFCO Joycome Foods Ltd is engaged in the feed production, hog production, slaughtering and cutting, production, distribution and sale of fresh pork and processed meat products, import and distribution of meat products (including pork, beef, poultry and mutton). Its segments include Hog production segment represents hog breeding and sales of hogs; Fresh pork segment represents slaughtering, wholesale and retail sales of fresh and frozen meats; Processed meat products segment represents manufacture, wholesale and retail sales of processed meat products; and Meat import segment represents sales of imported meat products. Geographically it derives revenue from Mainland China.
Executives
Shang Hai Ning Quan Zi Chan Guan Li You Xian Gong Si 2102 Investment manager
Cofco (hong Kong) Limited
Cofco Corporation

COFCO Joycome Foods Headlines

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