Tailam Tech Construction Holdings (HKSE:06193) ROC % : -10.86% (As of Jun. 2024)

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What is Tailam Tech Construction 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 %. Tailam Tech Construction Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -10.86%.

As of today (2025-04-04), Tailam Tech Construction Holdings's WACC % is 5.71%. Tailam Tech Construction Holdings's ROC % is -8.47% (calculated using TTM income statement data). Tailam Tech Construction Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tailam Tech Construction Holdings ROC % Historical Data

The historical data trend for Tailam Tech Construction 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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Tailam Tech Construction Holdings ROC % Chart

Tailam Tech Construction Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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14.81

12.11

3.16

2.43

-3.34

Tailam Tech Construction Holdings Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial										-0.17	5.03	-0.74	-5.31	-10.86

Tailam Tech Construction Holdings ROC % Calculation

Tailam Tech Construction 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 )
=	-4.993 * ( 1 - -49.54% )	/	( (265.785	+	181.931)	/ 2 )
=	-7.4665322	/	223.858
=	-3.34 %

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	))
=	450.03	-	134.783	-	( 49.462	-	max(0, 194.5	-	299.315	+	49.462	))
=	265.785

	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	))
=	316.517	-	76.2	-	( 58.386	-	max(0, 84.415	-	181.769	+	58.386	))
=	181.931

Tailam Tech Construction 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 )
=	-17.614 * ( 1 - -14.56% )	/	( (181.931	+	189.816)	/ 2 )
=	-20.1785984	/	185.8735
=	-10.86 %

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	))
=	316.517	-	76.2	-	( 58.386	-	max(0, 84.415	-	181.769	+	58.386	))
=	181.931

	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	))
=	277.279	-	50.848	-	( 36.615	-	max(0, 53.491	-	135.424	+	36.615	))
=	189.816

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

Tailam Tech Construction Holdings (HKSE:06193) 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, Tailam Tech Construction Holdings's WACC % is 5.71%. Tailam Tech Construction Holdings's ROC % is -8.47% (calculated using TTM income statement data). Tailam Tech Construction 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.

Tailam Tech Construction Holdings ROC % Related Terms

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Tailam Tech Construction Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Tailam Tech Construction Holdings Ltd (HKSE:06193) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yuanbei Village, Wangbao Town, Nantong, Jiangsu Province, Qidong, Nantong, CHN

Website

https://www.tailamgroup.com

Tailam Tech Construction Holdings Ltd is engaged in the manufacturing and sale of pre-stressed high-strength concrete piles and commercial concrete in the People's Republic of China. It sells its products to property developers and construction companies. Geographically, it derives revenue from the People's Republic of China.

Executives

Glorycore Investment Holdings Limited
Wong Leung Yau	2201 Interest of corporation controlled by you
Apax Investment Holdings Limited	2101 Beneficial owner
Ma Wai Kwok	2202 Interest of your spouse
Wong Han Yu Alice	2201 Interest of corporation controlled by you
Ruan Yu Hang	2202 Interest of your spouse
Wang Chao Hong	2201 Interest of corporation controlled by you

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