Best Mart 360 Holdings (HKSE:02360) ROC % : 32.57% (As of Jun. 2024)

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What is Best Mart 360 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 %. Best Mart 360 Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 32.57%.

As of today (2024-09-21), Best Mart 360 Holdings's WACC % is 5.98%. Best Mart 360 Holdings's ROC % is 30.67% (calculated using TTM income statement data). Best Mart 360 Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Best Mart 360 Holdings ROC % Historical Data

The historical data trend for Best Mart 360 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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Best Mart 360 Holdings ROC % Chart

Best Mart 360 Holdings Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

ROC %

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37.95

34.63

5.58

14.06

15.44

Best Mart 360 Holdings Semi-Annual Data
	Mar16	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Jun24
ROC %	Get a 7-Day Free Trial										23.80	23.56	33.64	29.61	32.57

Best Mart 360 Holdings ROC % Calculation

Best Mart 360 Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2022 is calculated as:

	ROC % (A: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2021 )	+	Invested Capital (A: Mar. 2022 ))	/ count )
=	141.817 * ( 1 - 18.17% )	/	( (767.353	+	736.03)	/ 2 )
=	116.0488511	/	751.6915
=	15.44 %

where

	Invested Capital		(A: Mar. 2021 )
=	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	))
=	821.202	-	67.778	-	( 91.312	-	max(0, 357.074	-	343.145	+	91.312	))
=	767.353

	Invested Capital		(A: Mar. 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	))
=	900.153	-	92.402	-	( 130.076	-	max(0, 349.412	-	421.133	+	130.076	))
=	736.03

Best Mart 360 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: Sep. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	305.522 * ( 1 - 16.91% )	/	( (769.441	+	789.227)	/ 2 )
=	253.8582298	/	779.334
=	32.57 %

where

	Invested Capital		(Q: Sep. 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	))
=	1112.986	-	239.598	-	( 255.561	-	max(0, 500.742	-	604.689	+	255.561	))
=	769.441

	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	))
=	1028.031	-	106.829	-	( 183.93	-	max(0, 386.883	-	518.858	+	183.93	))
=	789.227

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

Best Mart 360 Holdings (HKSE:02360) 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, Best Mart 360 Holdings's WACC % is 5.98%. Best Mart 360 Holdings's ROC % is 30.67% (calculated using TTM income statement data). Best Mart 360 Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Best Mart 360 Holdings ROC % Related Terms

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Best Mart 360 Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Best Mart 360 Holdings Ltd (HKSE:02360) » Definitions » ROC %

Comparable Companies

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BMTHF:USA

Address

No. 108 Wai Yip Street, 11th Floor, C-Bons International Center, Kowloon, Hong Kong, HKG

Website

https://www.bestmart360.com

Best Mart 360 Holdings Ltd is a leisure food retailer operating chain retail stores under its stores Best Mart 360 and FoodVille. The company is engaged in retail sales of food and beverage, household and personal care products in Hong Kong, Macau and People's Republic of China. The company generates majority of the revenue from Hong Kong.

Executives

China Merchants Group Limited	2201 Interest of corporation controlled by you
China Merchants Hoi Tung Trading Company Limited	2106 Person having a security interest in shares
United East Global Limited	2101 Beneficial owner
Universal Tycoon Limited	2101 Beneficial owner
Sino Sea Enterprises Limited	2101 Beneficial owner
Hui Ngai Fan	2201 Interest of corporation controlled by you
Lin Tsz Fung	2201 Interest of corporation controlled by you
Sea Wealth Ventures Limited	2101 Beneficial owner
Giant Blessing Global Limited	2101 Beneficial owner
Lee Wai Bing	2202 Interest of your spouse

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