Ying Kee Tea House Group (HKSE:08241) ROC % : 0.00% (As of Sep. 2024)

View and export this data going back to 2018. Start your Free Trial

What is Ying Kee Tea House 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 %. Ying Kee Tea House Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2025-03-30), Ying Kee Tea House Group's WACC % is 1.47%. Ying Kee Tea House Group's ROC % is -3.69% (calculated using TTM income statement data). Ying Kee Tea House Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ying Kee Tea House Group ROC % Historical Data

The historical data trend for Ying Kee Tea House 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.

Ying Kee Tea House Group ROC % Chart

Ying Kee Tea House Group Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

-17.97

-6.58

-3.91

-3.58

-9.05

Ying Kee Tea House Group Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-8.03	-6.33	-8.04	-	-

Ying Kee Tea House Group ROC % Calculation

Ying Kee Tea House Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-10.358 * ( 1 - 0% )	/	( (116.802	+	112.016)	/ 2 )
=	-10.358	/	114.409
=	-9.05 %

where

	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	))
=	110.609	-	0.324	-	( 2.278	-	max(0, 18.328	-	11.811	+	2.278	))
=	116.802

	Invested Capital		(A: Mar. 2024 )
=	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	))
=	101.58	-	0.56	-	( 2.912	-	max(0, 23.422	-	12.426	+	2.912	))
=	112.016

Ying Kee Tea House Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (112.016	+	111.446)	/ 2 )
=	0	/	111.731
=	0.00 %

where

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	101.58	-	0.56	-	( 2.912	-	max(0, 23.422	-	12.426	+	2.912	))
=	112.016

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	100.599	-	4.281	-	( 2.373	-	max(0, 26.943	-	11.815	+	2.373	))
=	111.446

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Ying Kee Tea House Group (HKSE:08241) 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, Ying Kee Tea House Group's WACC % is 1.47%. Ying Kee Tea House Group's ROC % is -3.69% (calculated using TTM income statement data). Ying Kee Tea House 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.

Ying Kee Tea House Group ROC % Related Terms

Thank you for viewing the detailed overview of Ying Kee Tea House Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Ying Kee Tea House Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Ying Kee Tea House Group Ltd (HKSE:08241) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5 Fung Yip Street, 8th Floor, Wah Shing Centre, Siu Sai Wan, Hong Kong, HKG

Website

https://www.yingkeetea.com

Ying Kee Tea House Group Ltd provides variety of Chinese tea leaves broadly categories into Pu-erh Tea, Oolong Tea, Fragrant tea, Green Tea, White Tea, Old Luk On Tea, and Black Tea. It also offers teawares and tea gift sets. The firm operates in a single segment and generates revenue from sales of tea products.

Executives

Chan King Chi	2202 Interest of your spouse
Chan Kun Yuen	2101 Beneficial owner
Chan Kwong Yuen	2101 Beneficial owner
Chan Shu Yuen	2101 Beneficial owner
Chan Tat Yuen	2101 Beneficial owner
Chu Min	2202 Interest of your spouse
Ng Wai Lam Lana Zoe	2202 Interest of your spouse
Po Miu Kuen Tammy	2202 Interest of your spouse
Wong Tak Ming	2101 Beneficial owner
Coastal Lion Limited	2201 Interest of corporation controlled by you
Profit Ocean Enterprises Limited	2101 Beneficial owner
Sky King Global Limited	2201 Interest of corporation controlled by you
Tri-luck Investments Limited	2201 Interest of corporation controlled by you
Wealth City Global Limited	2201 Interest of corporation controlled by you

Ying Kee Tea House Group Headlines

No Headlines