Gaodi Holdings (HKSE:01676) ROC % : -113.53% (As of Jun. 2023)

View and export this data going back to 2017. Start your Free Trial

What is Gaodi 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 %. Gaodi Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -113.53%.

As of today (2024-06-04), Gaodi Holdings's WACC % is 2.03%. Gaodi Holdings's ROC % is -56.77% (calculated using TTM income statement data). Gaodi Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gaodi Holdings ROC % Historical Data

The historical data trend for Gaodi 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.

Gaodi Holdings ROC % Chart

Gaodi Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

Get a 7-Day Free Trial

93.68

46.06

12.85

-11.82

-24.53

Gaodi Holdings Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Jun23
ROC %	Get a 7-Day Free Trial											-11.85	-21.07	-26.47	-30.99	-113.53

Gaodi Holdings ROC % Calculation

Gaodi Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-70.851 * ( 1 - -1.4% )	/	( (307.707	+	278.072)	/ 2 )
=	-71.842914	/	292.8895
=	-24.53 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	592.47	-	31.698	-	( 253.065	-	max(0, 53.227	-	517.591	+	253.065	))
=	307.707

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	497.109	-	3.039	-	( 215.998	-	max(0, 38.185	-	448.266	+	215.998	))
=	278.072

Gaodi Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-326.122 * ( 1 - 0.56% )	/	( (348.133	+	223.161)	/ 2 )
=	-324.2957168	/	285.647
=	-113.53 %

where

	Invested Capital		(Q: Jun. 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	))
=	482.089	-	34.42	-	( 99.536	-	max(0, 66.445	-	439.796	+	99.536	))
=	348.133

	Invested Capital		(Q: Jun. 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	))
=	313.166	-	17.289	-	( 72.716	-	max(0, 49.463	-	296.885	+	72.716	))
=	223.161

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

Gaodi Holdings (HKSE:01676) 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, Gaodi Holdings's WACC % is 2.03%. Gaodi Holdings's ROC % is -56.77% (calculated using TTM income statement data). Gaodi 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.

Gaodi Holdings ROC % Related Terms

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

Gaodi Holdings (HKSE:01676) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Gaodi Holdings Ltd (HKSE:01676) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

5th Floor, No. 5 Factory Meixi Road, Huandong Waters Tongon District, Huli Industrial Park, Fujian Province, Xiamen, CHN

Website

http://www.chinashenghaigroup.com

China Shenghai Group Ltd is engaged in the packaging and sales of seafood products and procurement and sales of fast moving consumer goods and others to the supermarket chains and convenience stores located across China. The company's products are categorized into dried seafood, algae and fungi, seafood snack and frozen seafood products. It has also developed new business on FMCG and cosmetics in Hong Kong and China. Its operating segments include packaging and sales of marine products segment and all other segment. It derives majority of the revenue from packaging and sales of marine products segment.

Executives

Foton Holdings Limited	2101 Beneficial owner
Yang Liqiong	2101 Beneficial owner
Ultima Prime Investment Limited	2501 Other
Arab Osman Mohammed	2104 Agent
Lai Wing Lun	2104 Agent
Rui Qi You Xian Gong Si	2101 Beneficial owner
Lau Shek Yau John	2101 Beneficial owner
Lin Yueying	2202 Interest of your spouse
Liu Rongru	2201 Interest of corporation controlled by you

Gaodi Holdings (HKSE:01676) Headlines

No Headlines