Sheng Tang Holdings (HKSE:08305) ROC % : 0.00% (As of Jun. 2024)

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What is Sheng Tang 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 %. Sheng Tang Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2025-03-28), Sheng Tang Holdings's WACC % is 9.10%. Sheng Tang Holdings's ROC % is -32.70% (calculated using TTM income statement data). Sheng Tang Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sheng Tang Holdings ROC % Historical Data

The historical data trend for Sheng Tang 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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Sheng Tang Holdings ROC % Chart

Sheng Tang Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.83

-1.02

-7.36

-10.79

-27.45

Sheng Tang Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-4.37	-16.71	-3.48	-106.64	-

Sheng Tang Holdings ROC % Calculation

Sheng Tang Holdings'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 )
=	-24.948 * ( 1 - 1.41% )	/	( (110.147	+	69.079)	/ 2 )
=	-24.5962332	/	89.613
=	-27.45 %

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	))
=	188.076	-	67.06	-	( 10.869	-	max(0, 114.288	-	154.557	+	10.869	))
=	110.147

	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	))
=	132.736	-	63.295	-	( 0.362	-	max(0, 90.983	-	125.375	+	0.362	))
=	69.079

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

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (69.079	+	62.371)	/ 2 )
=	0	/	65.725
=	0.00 %

where

	Invested Capital		(Q: 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	))
=	132.736	-	63.295	-	( 0.362	-	max(0, 90.983	-	125.375	+	0.362	))
=	69.079

	Invested Capital		(Q: Jun. 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	))
=	118.313	-	53.674	-	( 2.268	-	max(0, 75.604	-	111.876	+	2.268	))
=	62.371

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

Sheng Tang Holdings (HKSE:08305) 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, Sheng Tang Holdings's WACC % is 9.10%. Sheng Tang Holdings's ROC % is -32.70% (calculated using TTM income statement data). Sheng Tang 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.

Sheng Tang Holdings ROC % Related Terms

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Sheng Tang Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Sheng Tang Holdings Ltd (HKSE:08305) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

3 On Yiu Street, Unit 1901-1905, 19th Floor, Delta House, Shatin, New Territories, Hong Kong, HKG

Website

https://www.tongkee.com.hk

Sheng Tang Holdings Ltd Formerly Allurefem Holding Ltd is a multi-disciplinary contractor in Hong Kong. The company provides various services such as E&M Works, Civil Works, Steel Works, and others. It offers its services to the Construction Industry, Registers of the Buildings Department, Minor Works contractors in Class I, II, and III of all types of Specialist contractors, and others. The company's reportable segments are RMAA works projects, New construction works projects, and Corrosion protection works projects. It generates a majority of its revenue from the RMAA works projects. Geographically, the company generates the majority of its revenue from Hong Kong.

Executives

Advanced Pacific Enterprises Limited	2101 Beneficial owner
Heung Chung Sum	2201 Interest of corporation controlled by you
Xu Changcheng	2101 Beneficial owner
China Innovation Investment Limited	2101 Beneficial owner

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