Home Control International (HKSE:01747) ROC % : 40.26% (As of Jun. 2024)

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What is Home Control International 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 %. Home Control International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 40.26%.

As of today (2025-04-03), Home Control International's WACC % is 9.66%. Home Control International's ROC % is 25.09% (calculated using TTM income statement data). Home Control International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Home Control International ROC % Historical Data

The historical data trend for Home Control International'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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Home Control International ROC % Chart

Home Control International Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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15.40

19.88

18.58

19.95

17.85

Home Control International Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial									25.18	15.60	11.45	-11.27	40.26

Home Control International ROC % Calculation

Home Control International'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 )
=	37.596 * ( 1 - -3.58% )	/	( (290.465	+	145.91)	/ 2 )
=	38.9419368	/	218.1875
=	17.85 %

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	))
=	625.689	-	215.975	-	( 119.249	-	max(0, 303.708	-	497.425	+	119.249	))
=	290.465

	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	))
=	552.434	-	249.539	-	( 156.985	-	max(0, 283.988	-	454.741	+	156.985	))
=	145.91

Home Control International'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 )
=	93.782 * ( 1 - 21.87% )	/	( (145.91	+	218.125)	/ 2 )
=	73.2718766	/	182.0175
=	40.26 %

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	))
=	552.434	-	249.539	-	( 156.985	-	max(0, 283.988	-	454.741	+	156.985	))
=	145.91

	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	))
=	544.349	-	233.66	-	( 151.694	-	max(0, 339.22	-	431.784	+	151.694	))
=	218.125

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

Home Control International (HKSE:01747) 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, Home Control International's WACC % is 9.66%. Home Control International's ROC % is 25.09% (calculated using TTM income statement data). Home Control International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Home Control International ROC % Related Terms

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Home Control International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Home Control International Ltd (HKSE:01747) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

151 Lorong Chuan, No. 04-03A, New Tech Park, Singapore, SGP, 556741

Website

https://www.omniremotes.com

Home Control International Ltdis an investment holding company. It is involved in providing solutions for sensing and control technologies marketed in the smart home automation, consumer electronics, and set-top-box segments. Geographically, it derives a majority of its revenue from North America and also has a presence in Europe; Asia, and Latin America.

Executives

Morgan Stanley	2201 Interest of corporation controlled by you
Morgan Stanley Private Equity Asia Iv, Inc.	2201 Interest of corporation controlled by you
Morgan Stanley Private Equity Asia Iv, L.l.c.	2201 Interest of corporation controlled by you
Ms Holdings Incorporated	2201 Interest of corporation controlled by you
Nhpea Iv Holding Cooperatief U.a.	2201 Interest of corporation controlled by you
Nhpea Iv Home Control Netherlands B.v.	2101 Beneficial owner
North Haven Private Equity Asia Iv Holdings Limited	2201 Interest of corporation controlled by you
North Haven Private Equity Asia Iv, L.p.	2201 Interest of corporation controlled by you

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