GHW International (HKSE:09933) ROC % : 2.43% (As of Jun. 2024)

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What is GHW International 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 %. GHW International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 2.43%.

As of today (2025-03-27), GHW International's WACC % is 7.58%. GHW International's ROC % is -2.69% (calculated using TTM income statement data). GHW International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GHW International ROC % Historical Data

The historical data trend for GHW International'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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GHW International ROC % Chart

GHW International Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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7.12

3.92

18.03

24.83

-0.73

GHW International Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial										30.07	18.35	0.49	-0.10	2.43

GHW International ROC % Calculation

GHW International'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 )
=	26.022 * ( 1 - 140.15% )	/	( (1383.685	+	1497.794)	/ 2 )
=	-10.447833	/	1440.7395
=	-0.73 %

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	))
=	1874.554	-	375.517	-	( 115.352	-	max(0, 871.402	-	1015.421	+	115.352	))
=	1383.685

	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	))
=	1905.759	-	402.125	-	( 85.141	-	max(0, 967.426	-	973.266	+	85.141	))
=	1497.794

GHW International'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 )
=	58.94 * ( 1 - 35.84% )	/	( (1497.794	+	1619.315)	/ 2 )
=	37.815904	/	1558.5545
=	2.43 %

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	))
=	1905.759	-	402.125	-	( 85.141	-	max(0, 967.426	-	973.266	+	85.141	))
=	1497.794

	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	))
=	2094.505	-	563.629	-	( 104.739	-	max(0, 1236.464	-	1148.025	+	104.739	))
=	1619.315

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

GHW International (HKSE:09933) 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, GHW International's WACC % is 7.58%. GHW International's ROC % is -2.69% (calculated using TTM income statement data). GHW International 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.

GHW International ROC % Related Terms

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GHW International Business Description

Industry

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Traded in Other Exchanges

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Address

No. 69 Aoti Street, 2nd and 3rd floor, 6th Building, Xincheng Science Park, Nanjing, CHN

Website

https://www.goldenhighway.com

GHW International is an applied chemical intermediates provider in the integrated chemical services market, which engages in the production and sales of chemicals and sales of chemicals produced by third party manufacturers based in the PRC, the Southeast Asia region, Europe and the us. It offers a comprehensive product portfolio with a wide range of applications and a full spectrum of services relating to chemical intermediates supply chain. Its business operation consists of four principal business segments which include polyurethane materials, animal nutrition chemicals, fine chemicals and pharmaceutical products and intermediates.

Executives

Chen Zhaohui	2101 Beneficial owner
Endless Reward Limited	2101 Beneficial owner
Wu Hailing	2202 Interest of your spouse
Yin Yanbin	2201 Interest of corporation controlled by you
Commonwealth B Limited	2101 Beneficial owner
Commonwealth Yanbin Limited	2201 Interest of corporation controlled by you
Commonwealth Ghw Limited	2101 Beneficial owner
Commonwealth Happy Elephant Limited	2101 Beneficial owner
Commonwealth Yyb Limited	2201 Interest of corporation controlled by you
Tricor Trust (hong Kong) Limited	2301 Trustee
Ze Lu	2101 Beneficial owner

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