Hang Yick Holdings Co (HKSE:01894) ROC % : -17.04% (As of Sep. 2024)

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What is Hang Yick Holdings Co 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 %. Hang Yick Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -17.04%.

As of today (2025-04-07), Hang Yick Holdings Co's WACC % is 7.37%. Hang Yick Holdings Co's ROC % is -12.26% (calculated using TTM income statement data). Hang Yick Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hang Yick Holdings Co ROC % Historical Data

The historical data trend for Hang Yick Holdings Co'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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Hang Yick Holdings Co ROC % Chart

Hang Yick Holdings Co Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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6.19

-2.66

9.88

2.03

-3.58

Hang Yick Holdings Co Semi-Annual Data
	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial												10.30	-6.58	1.85	-8.30	-17.04

Hang Yick Holdings Co ROC % Calculation

Hang Yick Holdings Co'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 )
=	-4.344 * ( 1 - 7.34% )	/	( (107.281	+	117.47)	/ 2 )
=	-4.0251504	/	112.3755
=	-3.58 %

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	))
=	189.496	-	2.829	-	( 79.386	-	max(0, 18.842	-	167.33	+	79.386	))
=	107.281

	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	))
=	188.391	-	7.365	-	( 63.556	-	max(0, 27.903	-	159.668	+	63.556	))
=	117.47

Hang Yick Holdings Co'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 )
=	-20.832 * ( 1 - -2.83% )	/	( (117.47	+	134.015)	/ 2 )
=	-21.4215456	/	125.7425
=	-17.04 %

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	))
=	188.391	-	7.365	-	( 63.556	-	max(0, 27.903	-	159.668	+	63.556	))
=	117.47

	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	))
=	182.972	-	5.475	-	( 43.482	-	max(0, 23.138	-	152.279	+	43.482	))
=	134.015

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

Hang Yick Holdings Co (HKSE:01894) 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, Hang Yick Holdings Co's WACC % is 7.37%. Hang Yick Holdings Co's ROC % is -12.26% (calculated using TTM income statement data). Hang Yick Holdings Co 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.

Hang Yick Holdings Co ROC % Related Terms

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Hang Yick Holdings Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hang Yick Holdings Co Ltd (HKSE:01894) » Definitions » ROC %

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Traded in Other Exchanges

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Address

610 Cha Kwo Ling Road, 6th Floor, Sunray Industrial Centre, Yau Tong, Kowloon, hong Kong, HKG

Website

https://www.hy-engineering.com

Hang Yick Holdings Co Ltd is an investment holding company. It provides steel and metal engineering services ranging from the design, manufacture, supply, and installation of steel and metal products for construction projects in Hong Kong. It also sells its steel and metal products to customers. The company has two operating segments; Provision of steel and metal engineering services and Sales of steel and metal products. it derives a majority of its revenue from the Provision of steel and metal engineering services. The company operates in Mainland China and Hong Kong. It generates the majority of its revenue from Hong Kong.

Executives

Xu Ai Hua	2101 Beneficial owner
Xu Aihua	2101 Beneficial owner
Hy Steel Company Limited	2101 Beneficial owner
Lau Lai Ching	2201 Interest of corporation controlled by you
Lee Pui Sun	2201 Interest of corporation controlled by you

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