Yufengchang Holdings (HKSE:08631) ROC % : -31.12% (As of Sep. 2024)

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What is Yufengchang 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 %. Yufengchang Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -31.12%.

As of today (2025-04-04), Yufengchang Holdings's WACC % is 4.45%. Yufengchang Holdings's ROC % is -6.70% (calculated using TTM income statement data). Yufengchang Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Yufengchang Holdings ROC % Historical Data

The historical data trend for Yufengchang 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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Yufengchang Holdings ROC % Chart

Yufengchang Holdings Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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5.58

-9.00

-3.60

-8.95

-4.05

Yufengchang Holdings 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															-1.87	5.63	5.91	-	-31.12

Yufengchang Holdings ROC % Calculation

Yufengchang Holdings'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 )
=	-2.012 * ( 1 - 0% )	/	( (53.861	+	45.433)	/ 2 )
=	-2.012	/	49.647
=	-4.05 %

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	))
=	58.232	-	3.995	-	( 0.376	-	max(0, 18.274	-	48.257	+	0.376	))
=	53.861

	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	))
=	50.235	-	4.756	-	( 0.046	-	max(0, 20.939	-	40.925	+	0.046	))
=	45.433

Yufengchang Holdings'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 )
=	-12.352 * ( 1 - 0% )	/	( (45.433	+	33.961)	/ 2 )
=	-12.352	/	39.697
=	-31.12 %

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	))
=	50.235	-	4.756	-	( 0.046	-	max(0, 20.939	-	40.925	+	0.046	))
=	45.433

	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	))
=	48.343	-	13.906	-	( 0.476	-	max(0, 23.834	-	40.451	+	0.476	))
=	33.961

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

Yufengchang Holdings (HKSE:08631) 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, Yufengchang Holdings's WACC % is 4.45%. Yufengchang Holdings's ROC % is -6.70% (calculated using TTM income statement data). Yufengchang 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.

Yufengchang Holdings ROC % Related Terms

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Yufengchang Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Yufengchang Holdings Ltd (HKSE:08631) » Definitions » ROC %

Comparable Companies

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Address

Section C of Lot No.1345 in D.D.121, Yuen Long, New Territories, Hong Kong, HKG

Website

https://kg.yfcsx.com

Yufengchang Holdings Ltd Formerly Sun Kong Holdings Ltd is an investment holding company engaged in the sales of diesel oil, steam coal, and related products in Hong Kong. The company's sale services include sourcing diesel oil through oil trading companies, dispatching its fleet of diesel tank wagons to collect diesel oil from oil depots designated by its suppliers, and delivering diesel oil to destinations designated by the company's customers. It derives revenue from the sales of diesel oil, diesel exhaust fluid. All of the group's revenue is derived from Hong Kong.

Executives

Hong Kong Yufengchang Co., Ltd.	2101 Beneficial owner
Yufengchang International Holdings Co., Ltd.	2101 Beneficial owner
Wang Xin Long	2201 Interest of corporation controlled by you
Fully Fort Group Limited	2101 Beneficial owner
Law Ming Yik	2101 Beneficial owner

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