Roma (meta) Group (HKSE:08072) ROC % : 2.85% (As of Sep. 2023)

View and export this data going back to 2013. Start your Free Trial

What is Roma (meta) Group 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 %. Roma (meta) Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 2.85%.

As of today (2024-05-24), Roma (meta) Group's WACC % is 8.61%. Roma (meta) Group's ROC % is -4.14% (calculated using TTM income statement data). Roma (meta) Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Roma (meta) Group ROC % Historical Data

The historical data trend for Roma (meta) Group'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.

Roma (meta) Group ROC % Chart

Roma (meta) Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

Get a 7-Day Free Trial

4.30

4.55

11.10

1.08

-1.90

Roma (meta) Group Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															6.34	3.45	-19.32	-3.95	2.85

Roma (meta) Group ROC % Calculation

Roma (meta) Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-8.881 * ( 1 - -0.08% )	/	( (475.546	+	462.415)	/ 2 )
=	-8.8881048	/	468.9805
=	-1.90 %

where

	Invested Capital		(A: Mar. 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	))
=	485.245	-	1.276	-	( 8.423	-	max(0, 119.277	-	307.542	+	8.423	))
=	475.546

	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	))
=	472.803	-	1.873	-	( 8.515	-	max(0, 126.587	-	409.348	+	8.515	))
=	462.415

Roma (meta) Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	14 * ( 1 - 6.16% )	/	( (0	+	460.267)	/ 1 )
=	13.1376	/	460.267
=	2.85 %

where

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

	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	))
=	477.139	-	8.207	-	( 8.665	-	max(0, 133.236	-	439.75	+	8.665	))
=	460.267

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

Roma (meta) Group (HKSE:08072) 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, Roma (meta) Group's WACC % is 8.61%. Roma (meta) Group's ROC % is -4.14% (calculated using TTM income statement data). Roma (meta) Group 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.

Roma (meta) Group ROC % Related Terms

Thank you for viewing the detailed overview of Roma (meta) Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Roma (meta) Group (HKSE:08072) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Roma (meta) Group Ltd (HKSE:08072) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

39 Gloucester Road, Room 1101-4, 11th Floor, Harcourt House, Wanchai, Hong Kong, HKG

Website

https://www.romagroup.com

Roma (meta) Group Ltd is principally engaged in the provision of valuation and advisory services, financing services and securities broking, placing and underwriting, and investment advisory and asset management services The services of the company include natural resources valuation and technical advisory services, specialized valuation and consultancy services, such as business and intangible assets valuation, financial instruments valuation. Its business segments are Valuation and advisory services, Financing services, Securities broking, placing and underwriting and investment advisory and asset management, and other segments. It operates in Hong Kong and derives the majority of its revenue from the Valuation and advisory services segment.

Executives

Aperto Investments Limited	2101 Beneficial owner
Luk Kee Yan Kelvin	2201 Interest of corporation controlled by you
Fast And Fabulous Company Limited	2301 Trustee
Yue Kwai Wa Ken	2201 Interest of corporation controlled by you

Roma (meta) Group (HKSE:08072) Headlines

No Headlines