China United Venture Investment (HKSE:08159) ROC % : -22.38% (As of Sep. 2023)

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What is China United Venture Investment 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 United Venture Investment's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -22.38%.

As of today (2024-09-25), China United Venture Investment's WACC % is 3.65%. China United Venture Investment's ROC % is -34.71% (calculated using TTM income statement data). China United Venture Investment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China United Venture Investment ROC % Historical Data

The historical data trend for China United Venture Investment'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 United Venture Investment ROC % Chart

China United Venture Investment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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9.83

-7.31

-39.29

-26.67

-33.83

China United Venture Investment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-45.36	-15.67	-46.47	-22.38	-62.91

China United Venture Investment ROC % Calculation

China United Venture Investment's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-48.465 * ( 1 - -0.21% )	/	( (165.382	+	121.733)	/ 2 )
=	-48.5667765	/	143.5575
=	-33.83 %

where

	Invested Capital		(A: Dec. 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	))
=	319.751	-	84.194	-	( 108.389	-	max(0, 181.78	-	251.955	+	108.389	))
=	165.382

	Invested Capital		(A: Dec. 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	))
=	260.057	-	105.026	-	( 53.977	-	max(0, 184.717	-	218.015	+	53.977	))
=	121.733

China United Venture Investment'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 )
=	-29.976 * ( 1 - 0.99% )	/	( (132.64	+	0)	/ 1 )
=	-29.6792376	/	132.64
=	-22.38 %

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	))
=	283.338	-	116.174	-	( 106.215	-	max(0, 187.005	-	221.529	+	106.215	))
=	132.64

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

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

China United Venture Investment (HKSE:08159) 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 United Venture Investment's WACC % is 3.65%. China United Venture Investment's ROC % is -34.71% (calculated using TTM income statement data). China United Venture Investment 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 United Venture Investment ROC % Related Terms

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China United Venture Investment Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » China United Venture Investment Ltd (HKSE:08159) » Definitions » ROC %

Comparable Companies

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N/A

Address

No. 12 Harcourt Road, Room 1801-1802, 18th Floor, Bank of America Tower, Central, Hong Kong, HKG

Website

https://www.glorymark.com.tw

China United Venture Investment Ltd is engaged in the business of design, manufacture, and sales of connectivity products. The products are mainly used in computers, computer peripheral products, multi-media consumable electronic products, communication products, automobile electronics accessories, wire harnesses and medical equipment. Some of the products offered are USB hub, Card reader, Dongle, Cables and others. The company's segment includes the Original equipment manufacturer (OEM) customers segment, the Provision of comprehensive architectural services, and the Retail distributor's segment. Most of the firm's revenue gets derived through the OEM customers segment.

Executives

Wang Li Feng	2101 Beneficial owner
Pt Design Group Holdings Limited
Wise Thinker Holdings Limited
Pt Design Group Limited	2101 Beneficial owner
Wise Thinker Holding Limited	2101 Beneficial owner

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