Top Standard (HKSE:08510) ROC % : 0.00% (As of Jun. 2024)

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

As of today (2024-12-13), Top Standard's WACC % is 7.14%. Top Standard's ROC % is -21.82% (calculated using TTM income statement data). Top Standard earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Top Standard ROC % Historical Data

The historical data trend for Top Standard'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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Top Standard ROC % Chart

Top Standard Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Dec21

Dec22

Dec23

ROC %

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-28.94

-8.00

-5.14

4.06

-16.24

Top Standard 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															-4.03	-21.08	-38.39	-33.49	-

Top Standard ROC % Calculation

Top Standard'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 )
=	-3.451 * ( 1 - 0% )	/	( (23.144	+	19.36)	/ 2 )
=	-3.451	/	21.252
=	-16.24 %

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	))
=	10.112	-	5.51	-	( 1.179	-	max(0, 21.553	-	3.011	+	1.179	))
=	23.144

	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	))
=	15.472	-	10.452	-	( 2.416	-	max(0, 18.002	-	3.662	+	2.416	))
=	19.36

Top Standard'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% )	/	( (19.36	+	17.356)	/ 2 )
=	0	/	18.358
=	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	))
=	15.472	-	10.452	-	( 2.416	-	max(0, 18.002	-	3.662	+	2.416	))
=	19.36

	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	))
=	14.606	-	16.701	-	( 0.942	-	max(0, 21.41	-	1.959	+	0.942	))
=	17.356

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

Top Standard (HKSE:08510) 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, Top Standard's WACC % is 7.14%. Top Standard's ROC % is -21.82% (calculated using TTM income statement data). Top Standard 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.

Top Standard ROC % Related Terms

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Top Standard Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Top Standard Corp (HKSE:08510) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

87 Hung To Road, Unit 3C, 3rd Floor, Yue Xiu Industrial Building, Kwun Tong, Kowloon, HKG

Website

https://www.topstandard.com.hk

Top Standard Corp is an investment holding company and the Group is a restaurant group that operates restaurants and bars in Hong Kong and South-east Asia and online sales of wines. The group has two operating and reportable segments: catering service and online sales of wines. The group has been operating new restaurants Sushi MEW (Hong Kong) and Sushi MEW (Singapore). The company derives the majority of its revenue from food catering services which include food and beverage served. The group operates in Hong Kong, Malaysia, and Singapore. It generates the majority of its revenue from Hong Kong.

Executives

Jss Group Corporation
Chuk Stanley
Lazarus Securities Pty Ltd
Axis Motion Limited	2101 Beneficial owner
Focus Dynamics Group Berhad
Lau Wing Kee	2201 Interest of corporation controlled by you

Top Standard Headlines

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