Cool Link (Holdings) (HKSE:08491) ROC % : 0.00% (As of Jun. 2024)

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

As of today (2025-04-10), Cool Link (Holdings)'s WACC % is 7.34%. Cool Link (Holdings)'s ROC % is -2.34% (calculated using TTM income statement data). Cool Link (Holdings) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cool Link (Holdings) ROC % Historical Data

The historical data trend for Cool Link (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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Cool Link (Holdings) ROC % Chart

Cool Link (Holdings) Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-4.90

-0.87

-9.98

-2.39

-2.37

Cool Link (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															12.33	4.85	9.98	-33.98	-

Cool Link (Holdings) ROC % Calculation

Cool Link (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 )
=	-2.914 * ( 1 - -15.78% )	/	( (132.515	+	151.787)	/ 2 )
=	-3.3738292	/	142.151
=	-2.37 %

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	))
=	183.715	-	28.053	-	( 23.147	-	max(0, 62.868	-	94.314	+	23.147	))
=	132.515

	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	))
=	187.433	-	26.148	-	( 9.498	-	max(0, 64.543	-	82.225	+	9.498	))
=	151.787

Cool Link (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% )	/	( (151.787	+	163.919)	/ 2 )
=	0	/	157.853
=	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	))
=	187.433	-	26.148	-	( 9.498	-	max(0, 64.543	-	82.225	+	9.498	))
=	151.787

	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	))
=	240.997	-	24.753	-	( 52.325	-	max(0, 37.568	-	138.069	+	52.325	))
=	163.919

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

Cool Link (Holdings) (HKSE:08491) 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, Cool Link (Holdings)'s WACC % is 7.34%. Cool Link (Holdings)'s ROC % is -2.34% (calculated using TTM income statement data). Cool Link (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.

Cool Link (Holdings) ROC % Related Terms

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Cool Link (Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Cool Link (Holdings) Ltd (HKSE:08491) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 33 Chin Bee Crescent, Singapore, SGP, 619901

Website

https://www.coollink.com.sg

Cool Link (Holdings) Ltd is principally engaged in the food supplies business in Singapore. It supplies food products to ship chandlers, retailers, and customers who are in the food service industry. It supplies Fresh and UHT Milk, ICE Creams, Yogurt, Cheese, FRruit Juices, and Pure Drinking Water. It operates in one segment food and healthcare supplies. business.

Executives

Guo Guixian	2101 Beneficial owner
Zumegnsi Technology Group Limited	2101 Beneficial owner
Elephant International Holdings Group Limited	2101 Beneficial owner
Wu Hui	2101 Beneficial owner
Tian Yi	2101 Beneficial owner
Liu Shengnan	2101 Beneficial owner
Tan Seow Gee	2101 Beneficial owner
Gay Teo Siong	2101 Beneficial owner
Yuen Meta (international) Securities Limited	2301 Trustee
Yeo Poh Choo	2101 Beneficial owner
Excellent Success Investments Limited	2301 Trustee
Roma Group Limited	2201 Interest of corporation controlled by you
Yaneza Lana	2101 Beneficial owner
Wei Guochun	2101 Beneficial owner
Meng Jintao	2101 Beneficial owner

Cool Link (Holdings) Headlines

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