Asiaray Media Group (HKSE:01993) ROC % : 1.80% (As of Jun. 2024)

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What is Asiaray Media 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 %. Asiaray Media Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 1.80%.

As of today (2025-04-05), Asiaray Media Group's WACC % is 2.98%. Asiaray Media Group's ROC % is 1.35% (calculated using TTM income statement data). Asiaray Media Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Asiaray Media Group ROC % Historical Data

The historical data trend for Asiaray Media 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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Asiaray Media Group ROC % Chart

Asiaray Media Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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1.01

0.66

-1.03

1.35

Asiaray Media Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															-2.47	0.14	0.68	1.80	-0.50

Asiaray Media Group ROC % Calculation

Asiaray Media Group'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 )
=	44.235 * ( 1 - -4.06% )	/	( (3638.356	+	3196.782)	/ 2 )
=	46.030941	/	3417.569
=	1.35 %

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	))
=	3521.01	-	277.46	-	( 372.223	-	max(0, 1706.72	-	1311.914	+	372.223	))
=	3638.356

	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	))
=	3147.388	-	224.388	-	( 402.655	-	max(0, 1575.702	-	1301.92	+	402.655	))
=	3196.782

Asiaray Media Group'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 )
=	68.716 * ( 1 - 19.62% )	/	( (3196.782	+	2935.474)	/ 2 )
=	55.2339208	/	3066.128
=	1.80 %

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	))
=	3147.388	-	224.388	-	( 402.655	-	max(0, 1575.702	-	1301.92	+	402.655	))
=	3196.782

	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	))
=	2810.267	-	104.894	-	( 282.932	-	max(0, 1287.393	-	1057.292	+	282.932	))
=	2935.474

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

Asiaray Media Group (HKSE:01993) 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, Asiaray Media Group's WACC % is 2.98%. Asiaray Media Group's ROC % is 1.35% (calculated using TTM income statement data). Asiaray Media 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.

Asiaray Media Group ROC % Related Terms

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Asiaray Media Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Asiaray Media Group Ltd (HKSE:01993) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1 Kornhill Road, 16th Floor, Kornhill Plaza - Office Tower, Quarry Bay, Hong Kong, HKG

Website

https://www.asiaray.com

Asiaray Media Group Ltd is an investment holding company. It operates in three segments: the Airports business, which operates advertising services in airports; the Metro Lines and billboards business segment includes the operation of advertising services in metro lines; and billboards and building solutions; and Bus and other business, which provides advertising service in bus exterior & interior, and bus shelter, and also advertising services from other media spaces. Its geographical segments are Mainland China and Hong Kong, of which the vast majority of its revenue comes from Mainland China.

Executives

Media Cornerstone Limited
Ubs Trustees (b.v.i.) Limited
Space Management Limited
Lam Tak Hing
Hangzhou Yunbo Investment Consulting Co., Ltd.
Hu Simon Xiaoming
Jiang Fang
Jing Eric Xiandong
Ma Yun
Ant Small And Micro Financial Services Group Co., Ltd.	2201 Interest of corporation controlled by you
Antfin (hong Kong) Holding Limited	2101 Beneficial owner
Hang Zhou Yun Qiang Qi Ye Guan Li Zi Xun You Xian Gong Si	2201 Interest of corporation controlled by you
Great World Hk Media Pte. Ltd.	2101 Beneficial owner
L Capital Asia 2 Gp	2201 Interest of corporation controlled by you
L Capital Asia 2 Lp	2201 Interest of corporation controlled by you

Asiaray Media Group Headlines

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