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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.

* Premium members only.

Luxey International (Holdings) ROC % Chart

Luxey International (Holdings) Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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

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

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

* 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.


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

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
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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