Bingo Group Holdings (HKSE:08220) ROC % : -28.49% (As of Sep. 2023)

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What is Bingo Group 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 %. Bingo Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -28.49%.

As of today (2024-05-17), Bingo Group Holdings's WACC % is 7.92%. Bingo Group Holdings's ROC % is -80.66% (calculated using TTM income statement data). Bingo Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bingo Group Holdings ROC % Historical Data

The historical data trend for Bingo Group 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.

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Bingo Group Holdings ROC % Chart

Bingo Group Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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-64.38

-51.74

-43.75

-46.99

-71.59

Bingo Group 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															-77.93	-100.30	-54.54	-171.08	-28.49

Bingo Group Holdings ROC % Calculation

Bingo Group 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 )
=	-10.115 * ( 1 - 0% )	/	( (19.794	+	8.464)	/ 2 )
=	-10.115	/	14.129
=	-71.59 %

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	))
=	35.407	-	3.789	-	( 11.824	-	max(0, 14.744	-	34.285	+	11.824	))
=	19.794

	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	))
=	24.16	-	3.89	-	( 22.993	-	max(0, 11.869	-	23.675	+	22.993	))
=	8.464

Bingo Group 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 )
=	-3.152 * ( 1 - -4.81% )	/	( (0	+	11.596)	/ 1 )
=	-3.3036112	/	11.596
=	-28.49 %

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	))
=	22.342	-	4.105	-	( 19.465	-	max(0, 13.737	-	20.378	+	19.465	))
=	11.596

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

Bingo Group Holdings (HKSE:08220) 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, Bingo Group Holdings's WACC % is 7.92%. Bingo Group Holdings's ROC % is -80.66% (calculated using TTM income statement data). Bingo Group 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.

Bingo Group Holdings ROC % Related Terms

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Bingo Group Holdings (HKSE:08220) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Bingo Group Holdings Ltd (HKSE:08220) » Definitions » ROC %

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Address

414-424 Jaffe Road, Unit 202, 2th Floor, Chinaweal Centre, Hong Kong, HKG

Website

http://www.bingogroup.com.hk

Bingo Group Holdings Ltd is an investment holding company principally engaged in the investment and management of cinemas. The company operates through two segments. Cinema Investment and Management segment is engaged in the investment in cinemas and the provision of cinema management services. Filmed Entertainment, New Media Exploitations, and Licensing Businesses segment is engaged in movie production, licensing and derivatives, crossover marketing, the provision of interactive content, artists development, and last miles engagement. Its Cinema Investment and Management segment contributes to all of its revenue. Its geographical segments are Hong Kong and China, of which all of its revenues come from China.

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