China Wantian Holdings (HKSE:01854) ROC % : -20.30% (As of Jun. 2024)

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What is China Wantian 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 %. China Wantian Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -20.30%.

As of today (2025-03-27), China Wantian Holdings's WACC % is 3.70%. China Wantian Holdings's ROC % is -17.27% (calculated using TTM income statement data). China Wantian Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Wantian Holdings ROC % Historical Data

The historical data trend for China Wantian 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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China Wantian Holdings ROC % Chart

China Wantian Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

ROC %

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31.55

14.56

-2.32

-0.73

-4.32

China Wantian Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Jun24
ROC %	Get a 7-Day Free Trial														-8.76	-12.40	-13.57	-15.03	-20.30

China Wantian Holdings ROC % Calculation

China Wantian Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2022 is calculated as:

	ROC % (A: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2021 )	+	Invested Capital (A: Mar. 2022 ))	/ count )
=	-5.043 * ( 1 - -0.98% )	/	( (126.377	+	109.466)	/ 2 )
=	-5.0924214	/	117.9215
=	-4.32 %

where

	Invested Capital		(A: Mar. 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	))
=	145.582	-	4.016	-	( 37.431	-	max(0, 50.603	-	65.792	+	37.431	))
=	126.377

	Invested Capital		(A: Mar. 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	))
=	155.45	-	2.118	-	( 44.958	-	max(0, 30.689	-	74.555	+	44.958	))
=	109.466

China Wantian 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: Sep. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-32.952 * ( 1 - -5.01% )	/	( (158.489	+	182.509)	/ 2 )
=	-34.6028952	/	170.499
=	-20.30 %

where

	Invested Capital		(Q: Sep. 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	))
=	287.937	-	36.121	-	( 93.327	-	max(0, 58.094	-	154.061	+	93.327	))
=	158.489

	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	))
=	255.035	-	32.523	-	( 40.003	-	max(0, 58.557	-	156.222	+	40.003	))
=	182.509

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

China Wantian Holdings (HKSE:01854) 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, China Wantian Holdings's WACC % is 3.70%. China Wantian Holdings's ROC % is -17.27% (calculated using TTM income statement data). China Wantian 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.

China Wantian Holdings ROC % Related Terms

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China Wantian Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » China Wantian Holdings Ltd (HKSE:01854) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

33 Wang Chiu Road, Suite 2106A, 21/F, Exchange Tower, Kowloon Bay, Hong Kong, HKG

Website

http://www.cyfood.com.hk

China Wantian Holdings Ltd is engaged in the provision of vegetables and fruits. It provides procurement, selection, packaging, treating, processing, and distribution of vegetables and fruit ingredients. The company offers leaf vegetables, melon and fruit vegetables, root and rhizome vegetables, herbs and spices, mushrooms, fruits, processed fruits and vegetables, and others. The group's business falls under the primary segment of Sourcing, processing, and supplying food ingredients to food service operators in Hong Kong. The Group has three reportable segments; food supply which generates key revenue; catering; and environmental protection and technology. The company generates a majority of its revenue from its operations in Hong Kong and the rest from the People's Republic of China.

Executives

Liu Chi Ching
Hooy Kok Wai
Zhong Xueyong
Hooy Investment Limited
Hooy Kwok Pun
Yap Global Investment Limited
Yap Yuk Kiew
Wu Shuk Kwan
Classic Line Holdings Limited
Yek Hon Su
Yap Su Chai
Yap Siew Ngoh
Yap Siew Chow
Yap Kong Meng
Yap Hong Leng

China Wantian Holdings Headlines

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