Man Shun Group (Holdings) (HKSE:01746) ROC % : -15.76% (As of Jun. 2024)

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What is Man Shun Group (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 %. Man Shun Group (Holdings)'s annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -15.76%.

As of today (2024-12-14), Man Shun Group (Holdings)'s WACC % is 1.94%. Man Shun Group (Holdings)'s ROC % is -14.50% (calculated using TTM income statement data). Man Shun Group (Holdings) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Man Shun Group (Holdings) ROC % Historical Data

The historical data trend for Man Shun Group (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.

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Man Shun Group (Holdings) ROC % Chart

Man Shun Group (Holdings) Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.04

-16.30

-5.89

-3.36

-10.85

Man Shun Group (Holdings) Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial												-7.96	0.10	-11.68	-13.54	-15.76

Man Shun Group (Holdings) ROC % Calculation

Man Shun Group (Holdings)'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 )
=	-8.974 * ( 1 - 3.27% )	/	( (91.89	+	68.181)	/ 2 )
=	-8.6805502	/	80.0355
=	-10.85 %

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	))
=	164.371	-	7.9	-	( 64.581	-	max(0, 12.968	-	161.952	+	64.581	))
=	91.89

	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	))
=	172.713	-	16.162	-	( 88.37	-	max(0, 20.364	-	170.597	+	88.37	))
=	68.181

Man Shun Group (Holdings)'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 )
=	-11.272 * ( 1 - 3.16% )	/	( (68.181	+	70.324)	/ 2 )
=	-10.9158048	/	69.2525
=	-15.76 %

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	))
=	172.713	-	16.162	-	( 88.37	-	max(0, 20.364	-	170.597	+	88.37	))
=	68.181

	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	))
=	160.891	-	8.252	-	( 82.315	-	max(0, 10.629	-	158.605	+	82.315	))
=	70.324

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

Man Shun Group (Holdings) (HKSE:01746) 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, Man Shun Group (Holdings)'s WACC % is 1.94%. Man Shun Group (Holdings)'s ROC % is -14.50% (calculated using TTM income statement data). Man Shun Group (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.

Man Shun Group (Holdings) ROC % Related Terms

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Man Shun Group (Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Man Shun Group (Holdings) Ltd (HKSE:01746) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Nos. 23-39 Pak Tin Par Street, Room 1908, 19th Floor, Cheung Fung Industrial Building, Tsuen Wan, New Territories, Hong Kong, HKG

Website

https://www.manshungroup.com.hk

Man Shun Group (Holdings) Ltd is an engineering and construction service provider in Hong Kong. It mainly provides HVAC electrical and mechanical (E and M) engineering services for new residential property development projects through installation services only. HVAC E and M engineering services typically involve the installation of HVAC systems, which refers to heat, ventilation, and air-conditioning systems.

Executives

Prime Pinnacle Limited	2101 Beneficial owner
Chan Ho Fung	2202 Interest of your spouse
Cheng Phyllis Woon Kink	2202 Interest of your spouse
Cheung Yuen Chau	2201 Interest of corporation controlled by you
Cheung Yuen Tung	2201 Interest of corporation controlled by you

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