Snack Empire Holdings (HKSE:01843) ROC % : 3.82% (As of Sep. 2024)

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What is Snack Empire 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 %. Snack Empire Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 3.82%.

As of today (2025-04-05), Snack Empire Holdings's WACC % is 3.26%. Snack Empire Holdings's ROC % is -2.25% (calculated using TTM income statement data). Snack Empire Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Snack Empire Holdings ROC % Historical Data

The historical data trend for Snack Empire 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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Snack Empire Holdings ROC % Chart

Snack Empire Holdings Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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35.01

13.20

31.42

20.03

1.12

Snack Empire Holdings Semi-Annual Data
	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial										37.69	3.18	8.16	-4.75	3.82

Snack Empire Holdings ROC % Calculation

Snack Empire Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	0.893 * ( 1 - 20.32% )	/	( (55.752	+	71.005)	/ 2 )
=	0.7115424	/	63.3785
=	1.12 %

where

	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	))
=	192.655	-	7.822	-	( 137.553	-	max(0, 27.548	-	156.629	+	137.553	))
=	55.752

	Invested Capital		(A: Mar. 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	))
=	197.929	-	7.901	-	( 129.152	-	max(0, 31.357	-	150.38	+	129.152	))
=	71.005

Snack Empire Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	5.556 * ( 1 - 51.2% )	/	( (71.005	+	71.133)	/ 2 )
=	2.711328	/	71.069
=	3.82 %

where

	Invested Capital		(Q: Mar. 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	))
=	197.929	-	7.901	-	( 129.152	-	max(0, 31.357	-	150.38	+	129.152	))
=	71.005

	Invested Capital		(Q: Sep. 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	))
=	207.381	-	15.538	-	( 129.195	-	max(0, 31.989	-	152.699	+	129.195	))
=	71.133

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

Snack Empire Holdings (HKSE:01843) 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, Snack Empire Holdings's WACC % is 3.26%. Snack Empire Holdings's ROC % is -2.25% (calculated using TTM income statement data). Snack Empire 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.

Snack Empire Holdings ROC % Related Terms

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Snack Empire Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Snack Empire Holdings Ltd (HKSE:01843) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

10, Anson Road, No 21-02, International Plaza, Singapore, SGP, 079903

Website

https://www.snackemp.com

Snack Empire Holdings Ltd is a food and beverage group offering Taiwanese Snacks and Beverages under the Shihlin Taiwan Street Snacks brand. It operates two basic models, namely the Self-operated model and the franchise and license model. Its geographical segments include Singapore, Malaysia, the United States, Indonesia, and others, out of which the majority of the revenue is generated from Singapore.

Executives

Brilliant Stride Limited	2101 Beneficial owner
Chong Yi May Cheryl	2202 Interest of your spouse
Lim Michelle	2202 Interest of your spouse
Tay Daniel Kok Siong	2201 Interest of corporation controlled by you
Wong Chee Tat	2201 Interest of corporation controlled by you

Snack Empire Holdings Headlines

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