Bortex Global (HKSE:08118) ROC % : 17.13% (As of Oct. 2023)

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What is Bortex Global 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 %. Bortex Global's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was 17.13%.

As of today (2024-06-12), Bortex Global's WACC % is 7.71%. Bortex Global's ROC % is -23.06% (calculated using TTM income statement data). Bortex Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bortex Global ROC % Historical Data

The historical data trend for Bortex Global'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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Bortex Global ROC % Chart

Bortex Global Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROC %

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24.23

14.58

17.99

3.85

-20.68

Bortex Global Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
ROC %	Get a 7-Day Free Trial															-6.07	-8.23	-106.06	2.96	17.13

Bortex Global ROC % Calculation

Bortex Global's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

	ROC % (A: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2022 )	+	Invested Capital (A: Apr. 2023 ))	/ count )
=	-27.077 * ( 1 - -0.23% )	/	( (156.552	+	105.89)	/ 2 )
=	-27.1392771	/	131.221
=	-20.68 %

where

	Invested Capital		(A: Apr. 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	))
=	231.479	-	17.962	-	( 56.965	-	max(0, 45.388	-	199.637	+	56.965	))
=	156.552

	Invested Capital		(A: Apr. 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	))
=	138.78	-	14.857	-	( 18.033	-	max(0, 37.298	-	130.306	+	18.033	))
=	105.89

Bortex Global's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	1.292 * ( 1 - -1538.46% )	/	( (0	+	123.581)	/ 1 )
=	21.1689032	/	123.581
=	17.13 %

where

	Invested Capital		(Q: Jul. 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: Oct. 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	))
=	137.061	-	7.899	-	( 5.581	-	max(0, 27.175	-	130.509	+	5.581	))
=	123.581

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

Bortex Global (HKSE:08118) 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, Bortex Global's WACC % is 7.71%. Bortex Global's ROC % is -23.06% (calculated using TTM income statement data). Bortex Global 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.

Bortex Global ROC % Related Terms

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Bortex Global (HKSE:08118) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Bortex Global Ltd (HKSE:08118) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

58 Hung To Road, Room 29, 8th floor, Career and Kenson Industrial Mansion, Kowloon, Kwun Tong, Hong Kong, HKG

Website

http://www.bortex.com.cn

Bortex Global Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the designing, trading, and manufacturing of Light Emitting Diode(LED) lighting products. Its LEDs are bifurcated into LED decorative lighting and LED luminaire lighting, out of which the majority of the revenue is generated from the LED decorative lighting. Its geographical segments include Canada, the United States, PRC, Hong Kong, and others.

Executives

Real Charm Corp
Chung Yu Chun
Shiu Kwok Leung

Bortex Global (HKSE:08118) Headlines

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