Grace Life tech Holdings (HKSE:02112) ROC % : -0.77% (As of Jun. 2024)

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What is Grace Life tech 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 %. Grace Life tech Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -0.77%.

As of today (2025-04-03), Grace Life tech Holdings's WACC % is 11.56%. Grace Life tech Holdings's ROC % is -2.01% (calculated using TTM income statement data). Grace Life tech Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grace Life tech Holdings ROC % Historical Data

The historical data trend for Grace Life tech 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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Grace Life tech Holdings ROC % Chart

Grace Life tech Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.62

-2.90

-2.12

-2.70

-1.72

Grace Life tech Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															2.83	-8.13	-0.08	-3.29	-0.77

Grace Life tech Holdings ROC % Calculation

Grace Life tech Holdings'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 )
=	-18.009 * ( 1 - -1.57% )	/	( (1023.546	+	1103.299)	/ 2 )
=	-18.2917413	/	1063.4225
=	-1.72 %

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	))
=	1039.802	-	761.56	-	( 1.425	-	max(0, 1639.613	-	894.309	+	1.425	))
=	1023.546

	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	))
=	850.87	-	797.396	-	( 1.023	-	max(0, 1760.001	-	710.176	+	1.023	))
=	1103.299

Grace Life tech 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: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-8.592 * ( 1 - -0.18% )	/	( (1103.299	+	1142.236)	/ 2 )
=	-8.6074656	/	1122.7675
=	-0.77 %

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	))
=	850.87	-	797.396	-	( 1.023	-	max(0, 1760.001	-	710.176	+	1.023	))
=	1103.299

	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	))
=	840.075	-	814.13	-	( 1.89	-	max(0, 1819.308	-	703.017	+	1.89	))
=	1142.236

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

Grace Life tech Holdings (HKSE:02112) 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, Grace Life tech Holdings's WACC % is 11.56%. Grace Life tech Holdings's ROC % is -2.01% (calculated using TTM income statement data). Grace Life tech 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.

Grace Life tech Holdings ROC % Related Terms

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Grace Life tech Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Grace Life tech Holdings Ltd (HKSE:02112) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 22, D&E, Level 22, Menara Zenith Putra Square, MSC Kuantan, Kuantan, PHG, MYS, 25200

Website

http://www.caa-resources.com/html/index.php

Grace Life tech Holdings Ltd is engaged in iron ore exploration, mining, crushing, and beneficiation as well as the sale of iron ore products in the form of iron ore concentrates and iron ore fines. The company's segments are the Iron ore mining and processing operation segment, Commercial trade segment, Health product trade segment, Electronic products trade segments, and others. It generates the majority of its revenue from the Health product trade segment which includes the trading of health products. It has geographical markets in the PRC, Hong Kong, Malaysia, and others. It derives revenue from Hong Kong.

Executives

Haitong International Holdings Limited	2201 Interest of corporation controlled by you
Haitong International Securities Group Limited	2201 Interest of corporation controlled by you
Haitong Securities Co., Ltd.	2201 Interest of corporation controlled by you
Haitong International Finance Company Limited	2101 Beneficial owner
Si Chuan Sheng Chuan Jiu Ji Tuan Guo Ji Mao Yi You Xian Gong Si	2101 Beneficial owner
Ng Khing Yeu	2101 Beneficial owner
En Dian Shi Dai Ji Tuan You Xian Gong Si	2101 Beneficial owner
Cosmo Field Holdings Limited	2101 Beneficial owner
Li Yang	2201 Interest of corporation controlled by you
Hua Rong Hua Qiao Zi Chan Guan Li Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Li Yang	2201 Interest of corporation controlled by you
Ample Professional Limited	2106 Person having a security interest in shares
Zhong Guo Hua Rong Zi Chan Guan Li Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Haitong International Financial Products (singapore) Pte. Ltd.	2106 Person having a security interest in shares
Haitong International Securities Group (singapore) Pte. Ltd.	2201 Interest of corporation controlled by you

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