Altus Holdings (HKSE:08149) ROC % : 2.05% (As of Sep. 2023)

View and export this data going back to 2016. Start your Free Trial

What is Altus 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 %. Altus Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 2.05%.

As of today (2024-05-26), Altus Holdings's WACC % is 2.84%. Altus Holdings's ROC % is 2.29% (calculated using TTM income statement data). Altus Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Altus Holdings ROC % Historical Data

The historical data trend for Altus 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.

Altus Holdings ROC % Chart

Altus Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

Get a 7-Day Free Trial

2.76

0.49

1.62

1.54

1.63

Altus Holdings 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															-24.57	3.38	1.25	2.48	2.05

Altus Holdings ROC % Calculation

Altus Holdings'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 )
=	15.722 * ( 1 - 30.6% )	/	( (685.229	+	650.318)	/ 2 )
=	10.911068	/	667.7735
=	1.63 %

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	))
=	663.24	-	15.868	-	( 34.659	-	max(0, 76.664	-	38.807	+	34.659	))
=	685.229

	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	))
=	630.02	-	16.277	-	( 35.774	-	max(0, 75.437	-	38.862	+	35.774	))
=	650.318

Altus Holdings'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 )
=	18.06 * ( 1 - 31.44% )	/	( (0	+	603.046)	/ 1 )
=	12.381936	/	603.046
=	2.05 %

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	))
=	584.441	-	15.311	-	( 34.069	-	max(0, 71.566	-	37.65	+	34.069	))
=	603.046

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

Altus Holdings (HKSE:08149) 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, Altus Holdings's WACC % is 2.84%. Altus Holdings's ROC % is 2.29% (calculated using TTM income statement data). Altus 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.

Altus Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Altus Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Altus Holdings (HKSE:08149) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Altus Holdings Ltd (HKSE:08149) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

21 Wing Wo Street, Central, Hong Kong, HKG

Website

https://www.altus.com.hk

Altus Holdings Ltd is an investment holding company. It operates in two segments namely Advisory and consulting and Proprietary investments. The company generates maximum revenue from the Proprietary investments segment. The Proprietary investments segment includes leasing of investment properties for residential and commercial use and derives rental income therefrom as well as holding of a portfolio of securities for dividend income and aims for capital gain.

Executives

Flying Castle Limited	2101 Beneficial owner
Kinley-hecico Holdings Limited	2201 Interest of corporation controlled by you
Landmark Trust Switzerland Sa	2201 Interest of corporation controlled by you
Ho Shuk Yee Samantha	2202 Interest of your spouse
Ip Arnold Tin Chee	2501 Other
Chan Kit Lai Cecilia	2307 Founder of a discretionary trust who can infl
Lam Ip Tin Wai Chyvette	2501 Other

Altus Holdings (HKSE:08149) Headlines

No Headlines