King's Stone Holdings Group (HKSE:01943) ROC % : -124.35% (As of Sep. 2024)

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What is King's Stone Holdings Group 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 %. King's Stone Holdings Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -124.35%.

As of today (2024-12-15), King's Stone Holdings Group's WACC % is 4.19%. King's Stone Holdings Group's ROC % is -76.20% (calculated using TTM income statement data). King's Stone Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

King's Stone Holdings Group ROC % Historical Data

The historical data trend for King's Stone Holdings Group'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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King's Stone Holdings Group ROC % Chart

King's Stone Holdings Group Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-10.79

7.55

-20.06

7.08

-15.48

King's Stone Holdings Group Semi-Annual Data
	Mar16	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial											-1.23	25.77	7.72	-38.79	-124.35

King's Stone Holdings Group ROC % Calculation

King's Stone Holdings Group'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 )
=	-20.299 * ( 1 - 4.09% )	/	( (146.977	+	104.529)	/ 2 )
=	-19.4687709	/	125.753
=	-15.48 %

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	))
=	307.863	-	86.274	-	( 74.612	-	max(0, 91.237	-	293.969	+	74.612	))
=	146.977

	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	))
=	265.365	-	62.697	-	( 98.139	-	max(0, 81.235	-	255.012	+	98.139	))
=	104.529

King's Stone Holdings Group'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 )
=	-125.626 * ( 1 - 0% )	/	( (104.529	+	97.529)	/ 2 )
=	-125.626	/	101.029
=	-124.35 %

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	))
=	265.365	-	62.697	-	( 98.139	-	max(0, 81.235	-	255.012	+	98.139	))
=	104.529

	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	))
=	176.806	-	54.876	-	( 24.401	-	max(0, 55.314	-	168.436	+	24.401	))
=	97.529

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

King's Stone Holdings Group (HKSE:01943) 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, King's Stone Holdings Group's WACC % is 4.19%. King's Stone Holdings Group's ROC % is -76.20% (calculated using TTM income statement data). King's Stone Holdings Group 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.

King's Stone Holdings Group ROC % Related Terms

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King's Stone Holdings Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » King's Stone Holdings Group Ltd (HKSE:01943) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

152 Queen’s Road Central, Office Floor 29, Queen’s Road Centre, Hong Kong, HKG

Website

http://www.kshgl.com

King's Stone Holdings Group Ltd formerly Silver Tide Holdings Ltd is an investment holding company. The company is principally engaged in providing construction services including traditional formwork using timber and plywood, system formwork using aluminum and steel, and ancillary works such as concrete works and reinforcement works for the public and private sectors and securities dealing and broking. The company earns maximum revenue from the Construction service segment. Geographically, the company derives revenue from Hong Kong.

Executives

Wang Jianfeng	2201 Interest of corporation controlled by you
Central Force Premium Group Limited	2101 Beneficial owner
Regal Loyalty Limited	2201 Interest of corporation controlled by you
Xu Fang	2202 Interest of your spouse
Silver Tide Enterprises Limited	2101 Beneficial owner
Ip Chi Ming	2201 Interest of corporation controlled by you
Wong Fong Choi	2202 Interest of your spouse

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