Blue Moon Group Holdings (HKSE:06993) ROC % : -39.44% (As of Jun. 2024)

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What is Blue Moon Group 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 %. Blue Moon Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -39.44%.

As of today (2025-03-28), Blue Moon Group Holdings's WACC % is 8.75%. Blue Moon Group Holdings's ROC % is -23.87% (calculated using TTM income statement data). Blue Moon Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Blue Moon Group Holdings ROC % Historical Data

The historical data trend for Blue Moon Group 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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Blue Moon Group Holdings ROC % Chart

Blue Moon Group Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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47.70

27.40

16.10

4.47

-23.73

Blue Moon Group Holdings Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial									37.49	-10.99	24.01	-39.44	12.72

Blue Moon Group Holdings ROC % Calculation

Blue Moon Group 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 )
=	213.934 * ( 1 - 17.83% )	/	( (4173.473	+	3685.831)	/ 2 )
=	175.7895678	/	3929.652
=	4.47 %

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	))
=	12729.725	-	853.879	-	( 7702.373	-	max(0, 1426.346	-	10374.825	+	7702.373	))
=	4173.473

	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	))
=	12052.641	-	1034.984	-	( 7331.826	-	max(0, 1428.56	-	9565.511	+	7331.826	))
=	3685.831

Blue Moon Group 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 )
=	-1837.326 * ( 1 - 18.13% )	/	( (3685.831	+	3942.98)	/ 2 )
=	-1504.2187962	/	3814.4055
=	-39.44 %

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	))
=	12052.641	-	1034.984	-	( 7331.826	-	max(0, 1428.56	-	9565.511	+	7331.826	))
=	3685.831

	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	))
=	10785.998	-	586.901	-	( 6256.117	-	max(0, 1229.66	-	8159.482	+	6256.117	))
=	3942.98

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

Blue Moon Group Holdings (HKSE:06993) 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, Blue Moon Group Holdings's WACC % is 8.75%. Blue Moon Group Holdings's ROC % is -23.87% (calculated using TTM income statement data). Blue Moon Group 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.

Blue Moon Group Holdings ROC % Related Terms

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Blue Moon Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Blue Moon Group Holdings Ltd (HKSE:06993) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

No. 36, Pu Nan Road, Yun Pu Industrial Zone, Huangpu District, Guangzhou, CHN, 510760

Website

https://www.bluemoon.com.cn

Blue Moon has a portfolio of market-leading products in three categories: fabric care, personal hygiene, and home care. Fabric care comprises around 85% of the group's revenue. As a pioneer in China's household care market, it holds a leading market share by value in China's liquid laundry detergent and liquid soap markets, as at 2023. Blue Moon is also an early entrant into e-commerce, with the online channel contributing over half of 2023 sales. Most of Blue Moon's core products are marketed under the namesake brand.

Executives

Bmgh T Limited	2301 Trustee
Tricor Trust (hong Kong) Limited	2301 Trustee
Luo Qiuping	2202 Interest of your spouse
Pan Dong	2201 Interest of corporation controlled by you
Qi De Ji Tuan You Xian Gong Si
Hhlr Advisors, Ltd.	2102 Investment manager
Hhlr Fund, L.p.	2101 Beneficial owner
Hcm Bm Holdings, Ltd.	2101 Beneficial owner

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