SingAsia Holdings (HKSE:08293) ROC % : -47.77% (As of Jan. 2024)

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What is SingAsia 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 %. SingAsia Holdings's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -47.77%.

As of today (2025-04-05), SingAsia Holdings's WACC % is 5.07%. SingAsia Holdings's ROC % is -9.69% (calculated using TTM income statement data). SingAsia Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SingAsia Holdings ROC % Historical Data

The historical data trend for SingAsia 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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SingAsia Holdings ROC % Chart

SingAsia Holdings Annual Data

Trend

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

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-2.81

-34.13

-38.04

5.86

-26.31

SingAsia Holdings Quarterly Data
	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Jul24
ROC %	Get a 7-Day Free Trial															-11.24	31.97	-	-47.77	-

SingAsia Holdings ROC % Calculation

SingAsia Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	-7.963 * ( 1 - 0% )	/	( (32.09	+	28.433)	/ 2 )
=	-7.963	/	30.2615
=	-26.31 %

where

	Invested Capital		(A: 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	))
=	43.815	-	5.634	-	( 9.139	-	max(0, 21.503	-	27.594	+	9.139	))
=	32.09

	Invested Capital		(A: Jul. 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	))
=	42.193	-	4.266	-	( 24.109	-	max(0, 22.989	-	32.483	+	24.109	))
=	28.433

SingAsia Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-16.332 * ( 1 - 0.91% )	/	( (0	+	33.881)	/ 1 )
=	-16.1833788	/	33.881
=	-47.77 %

where

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

	Invested Capital		(Q: Jan. 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	))
=	40.667	-	3.586	-	( 13.01	-	max(0, 22.656	-	25.856	+	13.01	))
=	33.881

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

SingAsia Holdings (HKSE:08293) 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, SingAsia Holdings's WACC % is 5.07%. SingAsia Holdings's ROC % is -9.69% (calculated using TTM income statement data). SingAsia 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.

SingAsia Holdings ROC % Related Terms

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SingAsia Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SingAsia Holdings Ltd (HKSE:08293) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

60 Paya Lebar Road, No. 12–29 Paya Lebar Square, Singapore, SGP, 409051

Website

http://www.singasia.com.sg

SingAsia Holdings Ltd is a workforce solutions provider for companies and organizations looking to streamline their operations in hotels, resorts, retail, food and beverage and other educational institutions, event organizers, and various industries sectors. The group's segments include Manpower outsourcing and Manpower recruitment. The majority of its revenue is derived from the Manpower outsourcing segment. Geographically, it derives majority of its revenue from Singapore.

Executives

China New Consumption Group Limited	2101 Beneficial owner
Irregular Consulting Limited	2101 Beneficial owner
Wee Yu-chih	2201 Interest of corporation controlled by you
Tse Sing Yu	2201 Interest of corporation controlled by you
Huang Weiyan	2101 Beneficial owner
Goh Guan Chua	2101 Beneficial owner
Centrex Treasure Holdings Limited	2101 Beneficial owner
Sim Hak Chor	2201 Interest of corporation controlled by you
Eden Publishing Pte. Ltd.	2101 Beneficial owner
Teo Li Lian	2101 Beneficial owner
Li Haifeng	2101 Beneficial owner
Sim Hak Chor	2201 Interest of corporation controlled by you

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