Luxey International (Holdings) (HKSE:08041) ROC % : -3.34% (As of Dec. 2023)

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What is Luxey International (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 %. Luxey International (Holdings)'s annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -3.34%.

As of today (2024-12-15), Luxey International (Holdings)'s WACC % is 4.16%. Luxey International (Holdings)'s ROC % is -6.02% (calculated using TTM income statement data). Luxey International (Holdings) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Luxey International (Holdings) ROC % Historical Data

The historical data trend for Luxey International (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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Luxey International (Holdings) ROC % Chart

Luxey International (Holdings) Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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-21.80

-19.71

-14.75

-3.33

-1.73

Luxey International (Holdings) Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															5.78	-6.74	-19.88	-3.34	-

Luxey International (Holdings) ROC % Calculation

Luxey International (Holdings)'s annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-0.766 * ( 1 - -1.36% )	/	( (47.997	+	41.534)	/ 2 )
=	-0.7764176	/	44.7655
=	-1.73 %

where

	Invested Capital		(A: Jun. 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	))
=	64.499	-	3.263	-	( 13.239	-	max(0, 30.952	-	61.12	+	13.239	))
=	47.997

	Invested Capital		(A: 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	))
=	60.827	-	2.255	-	( 17.038	-	max(0, 29.6	-	59.218	+	17.038	))
=	41.534

Luxey International (Holdings)'s annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-1.544 * ( 1 - 0% )	/	( (0	+	46.177)	/ 1 )
=	-1.544	/	46.177
=	-3.34 %

where

	Invested Capital		(Q: Sep. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	61.872	-	3.351	-	( 12.344	-	max(0, 32.154	-	59.308	+	12.344	))
=	46.177

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Luxey International (Holdings) (HKSE:08041) 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, Luxey International (Holdings)'s WACC % is 4.16%. Luxey International (Holdings)'s ROC % is -6.02% (calculated using TTM income statement data). Luxey International (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.

Luxey International (Holdings) ROC % Related Terms

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Luxey International (Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Luxey International (Holdings) Ltd (HKSE:08041) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Wing Ming Street, Unit B, 5th floor, Hang Cheong Factory Building, Cheung Sha Wan, Kowloon, Hong Kong, HKG

Website

https://www.luxey.com.hk

Luxey International (Holdings) Ltd is an is an investment holding company. The company along with its subsidiaries operates in three segments, the Swimwear and garment segment is engaged in the manufacturing and trading of swimwear and garment products. The E-commerce and online shopping-related segment is engaged in the E-Commerce and provision of online shopping services. The money lending segment includes lending activities, and the majority of its revenue generates from the Swimwear and garment segment.

Executives

Wide Select Investments Limited	2101 Beneficial owner
Lee Yim	2201 Interest of corporation controlled by you
Lau Chi Yuen Joseph	2101 Beneficial owner
Big Good Management Limited	2101 Beneficial owner
Ma Hoi Cheuk	2201 Interest of corporation controlled by you
Jl Investments Capital Limited	2101 Beneficial owner

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