Time Watch Investments (HKSE:02033) ROC % : 1.52% (As of Jun. 2024)

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What is Time Watch Investments 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 %. Time Watch Investments's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 1.52%.

As of today (2025-04-02), Time Watch Investments's WACC % is 5.82%. Time Watch Investments's ROC % is -7.55% (calculated using TTM income statement data). Time Watch Investments earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Time Watch Investments ROC % Historical Data

The historical data trend for Time Watch Investments'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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Time Watch Investments ROC % Chart

Time Watch Investments Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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7.81

11.41

-0.59

1.55

-0.33

Time Watch Investments 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															-3.44	7.39	-1.85	1.52	-4.30

Time Watch Investments ROC % Calculation

Time Watch Investments's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-5.419 * ( 1 - 20.43% )	/	( (1358.961	+	1252.745)	/ 2 )
=	-4.3118983	/	1305.853
=	-0.33 %

where

	Invested Capital		(A: Jun. 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	))
=	2619.592	-	98.719	-	( 1161.912	-	max(0, 155.171	-	1637.208	+	1161.912	))
=	1358.961

	Invested Capital		(A: 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	))
=	2540.873	-	134.428	-	( 1153.7	-	max(0, 154.723	-	1545.509	+	1153.7	))
=	1252.745

Time Watch Investments'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 )
=	21.988 * ( 1 - 16.06% )	/	( (1181.77	+	1252.745)	/ 2 )
=	18.4567272	/	1217.2575
=	1.52 %

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	))
=	2548.406	-	134.628	-	( 1232.008	-	max(0, 154.013	-	1670.563	+	1232.008	))
=	1181.77

	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	))
=	2540.873	-	134.428	-	( 1153.7	-	max(0, 154.723	-	1545.509	+	1153.7	))
=	1252.745

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

Time Watch Investments (HKSE:02033) 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, Time Watch Investments's WACC % is 5.82%. Time Watch Investments's ROC % is -7.55% (calculated using TTM income statement data). Time Watch Investments 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.

Time Watch Investments ROC % Related Terms

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Time Watch Investments Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Time Watch Investments Ltd (HKSE:02033) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

77 Wing Hong Street, 27th Floor, CEO Tower, Kowloon, Hong Kong, HKG

Website

https://www.timewatch.com.hk

Time Watch Investments Ltd is an investment holding company that operates as a manufacturer, brand-owner, and retailer of watches in the People's Republic of China (PRC). The company operates through following segments: Tian Wang Watch Business, Watch Movements Trading Business, and Other Brands (PRC) Business. The company generates maximum revenue from the Tian Wang Watch Business that involves manufacturing, the wholesale and retail business of owned brand watches, Tian Wang Watch. Its geographical segments include the PRC, which is the key revenue generator, and the Asia Pacific.

Executives

Tung Koon Ming	2305 Beneficiary of a trust
Tung Koon Ming Family (ptc) Limited	2301 Trustee
Red Glory Investments Limited
Tam Fun Hung
Webb David Michael	2101 Beneficial owner
Areo Holdings Limited	2201 Interest of corporation controlled by you
Oav Holdings, L.p.	2201 Interest of corporation controlled by you
Orchid Asia V Gp, Limited	2201 Interest of corporation controlled by you
Orchid Asia V Group Management, Limited	2201 Interest of corporation controlled by you
Orchid Asia V Group, Limited	2201 Interest of corporation controlled by you
Orchid Asia V, L.p.	2101 Beneficial owner
Lam Lai Ming	2201 Interest of corporation controlled by you
Li Gabriel	2201 Interest of corporation controlled by you

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