Great World Co Holdings (HKSE:08003) ROC % : 0.00% (As of Sep. 2024)

View and export this data going back to 1999. Start your Free Trial

What is Great World Co 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 %. Great World Co Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2025-04-05), Great World Co Holdings's WACC % is 5.80%. Great World Co Holdings's ROC % is 0.18% (calculated using TTM income statement data). Great World Co Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great World Co Holdings ROC % Historical Data

The historical data trend for Great World Co 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.

* Premium members only.

Great World Co Holdings ROC % Chart

Great World Co Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

-13.56

-10.33

-29.23

-34.36

2.24

Great World Co Holdings Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-12.53	0.79	11.41	2.06	-

Great World Co Holdings ROC % Calculation

Great World Co Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	2.363 * ( 1 - 11.41% )	/	( (96.914	+	89.774)	/ 2 )
=	2.0933817	/	93.344
=	2.24 %

where

	Invested Capital		(A: Mar. 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	))
=	229.921	-	193.847	-	( 12.504	-	max(0, 206.768	-	145.928	+	12.504	))
=	96.914

	Invested Capital		(A: Mar. 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	))
=	205.664	-	178.183	-	( 8.601	-	max(0, 191.158	-	128.865	+	8.601	))
=	89.774

Great World Co Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (89.774	+	94.069)	/ 2 )
=	0	/	91.9215
=	0.00 %

where

	Invested Capital		(Q: Mar. 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	))
=	205.664	-	178.183	-	( 8.601	-	max(0, 191.158	-	128.865	+	8.601	))
=	89.774

	Invested Capital		(Q: Sep. 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	))
=	207.969	-	181.442	-	( 6.111	-	max(0, 195.152	-	127.61	+	6.111	))
=	94.069

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

Great World Co Holdings (HKSE:08003) 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, Great World Co Holdings's WACC % is 5.80%. Great World Co Holdings's ROC % is 0.18% (calculated using TTM income statement data). Great World Co 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.

Great World Co Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Great World Co Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Great World Co Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Great World Co Holdings Ltd (HKSE:08003) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

7 Cheung Shun Street, Office No. 4, 21st Floor, Saxon Tower, Lai Chi Kok, Kowloon, Hong Kong, HKG

Website

https://www.gwchl.com

Great World Co Holdings Ltd is an investment holding company. The firm has four segments. The intelligent advertising and railroad media business segment that derives the majority of revenue offers mobile advertising media services for intelligent advertising and property market customers in the PRC. Cultivation and sales of agricultural and forestry products segment engage in the cultivation of forestry and wood material products, Chinese herbal medicine ingredients, agricultural by-products, and sales of processed and prepackaged food. Trading (Supply Chain) Business sales information technology products and industrial consumer products, as well as related R&D. Property business, engages in property investment and development, operating and managing residential and commercial properties.

Executives

Win Bless Limited	2101 Beneficial owner
Zhao Xinyan	2201 Interest of corporation controlled by you
Lin Shunping	2101 Beneficial owner
Gold City Assets Holdings Limited
Ng Mui King Joky

Great World Co Holdings Headlines

No Headlines