China Ocean Group Development (HKSE:08047) ROC % : 0.00% (As of Sep. 2024)

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What is China Ocean Group Development 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 %. China Ocean Group Development's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2025-03-03), China Ocean Group Development's WACC % is 3.34%. China Ocean Group Development's ROC % is 0.89% (calculated using TTM income statement data). China Ocean Group Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Ocean Group Development ROC % Historical Data

The historical data trend for China Ocean Group Development'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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China Ocean Group Development ROC % Chart

China Ocean Group Development Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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2.79

-1.72

-0.54

-3.26

-0.24

China Ocean Group Development Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-11.24	0.72	3.33	-	-

China Ocean Group Development ROC % Calculation

China Ocean Group Development'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 )
=	-1.955 * ( 1 - 0.64% )	/	( (787.065	+	848.839)	/ 2 )
=	-1.942488	/	817.952
=	-0.24 %

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	))
=	936.916	-	145.722	-	( 4.129	-	max(0, 393.918	-	635.311	+	4.129	))
=	787.065

	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	))
=	1061.472	-	212.39	-	( 0.243	-	max(0, 490.81	-	813.947	+	0.243	))
=	848.839

China Ocean Group Development'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% )	/	( (848.839	+	853.375)	/ 2 )
=	0	/	851.107
=	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	))
=	1061.472	-	212.39	-	( 0.243	-	max(0, 490.81	-	813.947	+	0.243	))
=	848.839

	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	))
=	1270.503	-	416.995	-	( 0.133	-	max(0, 719.686	-	1030.304	+	0.133	))
=	853.375

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

China Ocean Group Development (HKSE:08047) 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, China Ocean Group Development's WACC % is 3.34%. China Ocean Group Development's ROC % is 0.89% (calculated using TTM income statement data). China Ocean Group Development 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.

China Ocean Group Development ROC % Related Terms

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China Ocean Group Development Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » China Ocean Group Development Ltd (HKSE:08047) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

26 Harbour Road, Wan Chai, Room 03, 22nd Floor, China Resources Building, Hong Kong, HKG

Website

http://www.chinaoceangroup.com.hk

China Ocean Group Development Ltd operates as a holding company. It is engaged in various business segments that are Supply Chain Management Segment services business, which provides services involving the planning and implementation of an integrated solution for the effective flow of business, logistic, information and funds; and Money Lending, which provides money lending services. The Ocean fishing segment which provides fishing and catching business in open sea beyond the coastal region. The Supply Chain Management services business segment generates maximum revenue for the company. Geographically, the company offers its services to Hong Kong and China.

Executives

Liu Yi	2101 Beneficial owner
Jing Peng Xin He (hong Kong) Limited	2101 Beneficial owner
Shenzhqn Jing Peng Xin Trade Co Ltd	2101 Beneficial owner
Chen Quan	2101 Beneficial owner

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