Joy Spreader Group (HKSE:06988) ROC % : -55.66% (As of Jun. 2024)

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What is Joy Spreader 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 %. Joy Spreader Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -55.66%.

As of today (2024-12-12), Joy Spreader Group's WACC % is 9.59%. Joy Spreader Group's ROC % is -57.60% (calculated using TTM income statement data). Joy Spreader Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Joy Spreader Group ROC % Historical Data

The historical data trend for Joy Spreader 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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Joy Spreader Group ROC % Chart

Joy Spreader Group Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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33.59

31.58

19.87

-19.02

-42.04

Joy Spreader Group Semi-Annual Data
	Dec17	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial							6.43	-41.81	-22.70	-59.91	-55.66

Joy Spreader Group ROC % Calculation

Joy Spreader 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 )
=	-687.508 * ( 1 - -0.02% )	/	( (1931.559	+	1339.656)	/ 2 )
=	-687.6455016	/	1635.6075
=	-42.04 %

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	))
=	2798.321	-	290.757	-	( 576.005	-	max(0, 309.74	-	2375.233	+	576.005	))
=	1931.559

	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	))
=	1868.777	-	201.157	-	( 327.964	-	max(0, 220.236	-	1707.921	+	327.964	))
=	1339.656

Joy Spreader 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 )
=	-650.38 * ( 1 - -0.02% )	/	( (1339.656	+	997.962)	/ 2 )
=	-650.510076	/	1168.809
=	-55.66 %

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	))
=	1868.777	-	201.157	-	( 327.964	-	max(0, 220.236	-	1707.921	+	327.964	))
=	1339.656

	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	))
=	1434.266	-	161.496	-	( 274.808	-	max(0, 222.372	-	1294.865	+	274.808	))
=	997.962

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

Joy Spreader Group (HKSE:06988) 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, Joy Spreader Group's WACC % is 9.59%. Joy Spreader Group's ROC % is -57.60% (calculated using TTM income statement data). Joy Spreader 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.

Joy Spreader Group ROC % Related Terms

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Joy Spreader Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Joy Spreader Group Inc (HKSE:06988) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

5YN:Germany

Address

Zone A, Building T18, Jiuxianqiao Diantong Creative Park, Chaoyang District, Beijing, CHN

Website

http://www.joyspreader.com

Joy Spreader Group Inc is a mobile new media performance-based marketing technology company in China. The company's segments include the Provision of performance-based we-media marketing services segment which mainly comprises the provision of these marketing services to help its marketing customers direct to consumer, acquire new users and sales orders, and realize product promotion on a diverse we-media network; and the Sales of E-commerce goods segment which comprises the sales of E-commerce goods on an online basis. The Others segment comprises the provision of the culture related services. It derives maximum revenue from Sale of E-commerce goods. The company operates in Mainland China and Hong Kong.

Executives

Zhu Zinan	2201 Interest of corporation controlled by you
Lv Xueqiang	2201 Interest of corporation controlled by you
Nan Jing Ping Heng Zi Ben Guan Li Zhong Xin Pu Tong He Huo	2201 Interest of corporation controlled by you
Zzn. Ltd.	2101 Beneficial owner
Zheng Weihe	2201 Interest of corporation controlled by you
Nt Balance Capital Ltd.	2101 Beneficial owner
Huang Li	2201 Interest of corporation controlled by you
Shen Zhen Tong Chuang Wei Ye Zi Chan Guan Li Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Shen Zhen Shi Tong Chuang Wei Ye Chuang Ye Tou Zi You Xian Gong Si	2201 Interest of corporation controlled by you
Nan Jing Ping Heng Zi Ben Guan Li Zhong Xin You Xian He Huo	2201 Interest of corporation controlled by you
Shen Zhen Nan Hai Cheng Zhang Tong Ying Gu Quan Tou Zi Ji Jin You Xian He Huo	2201 Interest of corporation controlled by you
Shen Zhen Tong Chuang Jin Xiu Zi Chan Guan Li You Xian Gong Si	2201 Interest of corporation controlled by you
Nan Tong Shi Ren Min Zheng Fu Guo You Zi Chan Jian Du Wei Yuan Hui	2201 Interest of corporation controlled by you
Nan Tong Shi Chan Ye Tou Zi Mu Ji Jin You Xian Gong Si	2201 Interest of corporation controlled by you
Nan Tong Shi Cai Zheng Ju	2201 Interest of corporation controlled by you

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