Lesi Group (HKSE:02540) ROC % : 0.00% (As of Jun. 2024)

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What is Lesi 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 %. Lesi Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2025-03-26), Lesi Group's WACC % is 9.73%. Lesi Group's ROC % is 7.23% (calculated using TTM income statement data). Lesi Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lesi Group ROC % Historical Data

The historical data trend for Lesi 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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Lesi Group ROC % Chart

Lesi Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

19.34

23.73

21.64

18.54

Lesi Group Quarterly Data
	Dec20	Dec21	Sep22	Dec22	Jun23	Sep23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			33.12	-	16.61	13.69	-

Lesi Group ROC % Calculation

Lesi 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 )
=	81.091 * ( 1 - 3.67% )	/	( (388.822	+	453.63)	/ 2 )
=	78.1149603	/	421.226
=	18.54 %

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	))
=	561.289	-	106.363	-	( 66.104	-	max(0, 156.119	-	557.344	+	66.104	))
=	388.822

	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	))
=	640.266	-	102.583	-	( 84.053	-	max(0, 174.114	-	638.642	+	84.053	))
=	453.63

Lesi 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 )
=	0 * ( 1 - 0% )	/	( (453.63	+	582.012)	/ 2 )
=	0	/	517.821
=	0.00 %

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	))
=	640.266	-	102.583	-	( 84.053	-	max(0, 174.114	-	638.642	+	84.053	))
=	453.63

	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	))
=	875.805	-	192.488	-	( 101.305	-	max(0, 263.148	-	869.628	+	101.305	))
=	582.012

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

Lesi Group (HKSE:02540) 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, Lesi Group's WACC % is 9.73%. Lesi Group's ROC % is 7.23% (calculated using TTM income statement data). Lesi 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.

Lesi Group ROC % Related Terms

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Lesi Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Lesi Group Ltd (HKSE:02540) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

25/F, Block B, China Railway Construction Plaza, Chaoyang District, Beijing, CHN

Website

https://www.lscx.com.cn

Lesi Group Ltd is a mobile advertising service provider in the PRC. It mainly provides comprehensive mobile advertising services to customers for marketing their brands, products, and/or services on media platforms. Its services include mobile marketing planning, traffic acquisition, production of ad creatives, ad placements, ad optimization, ad campaign management, and ad distribution.

Executives

Ka Lok Holdings Limited	2101 Beneficial owner
Quartet Yutong Holdings Limited	2201 Interest of corporation controlled by you
Remit Sheng Holdings Limited	2201 Interest of corporation controlled by you
Shu Qing	2202 Interest of your spouse
Yu Canliang	2201 Interest of corporation controlled by you
Zhao Libing	2201 Interest of corporation controlled by you

Lesi Group Headlines

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