Litian Pictures Holdings (HKSE:09958) ROC % : -2.49% (As of Jun. 2024)

View and export this data going back to 2020. Start your Free Trial

What is Litian Pictures 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 %. Litian Pictures Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -2.49%.

As of today (2025-03-03), Litian Pictures Holdings's WACC % is 8.73%. Litian Pictures Holdings's ROC % is -25.80% (calculated using TTM income statement data). Litian Pictures Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Litian Pictures Holdings ROC % Historical Data

The historical data trend for Litian Pictures 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.

* Premium members only.

Litian Pictures Holdings ROC % Chart

Litian Pictures Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

35.94

27.02

-10.55

-44.56

-27.03

Litian Pictures Holdings Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial								-0.76	-84.37	0.15	-45.49	-2.49

Litian Pictures Holdings ROC % Calculation

Litian Pictures 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 )
=	-100.215 * ( 1 - -8.32% )	/	( (425.047	+	378.039)	/ 2 )
=	-108.552888	/	401.543
=	-27.03 %

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	))
=	916.469	-	424.89	-	( 66.532	-	max(0, 704.796	-	886.086	+	66.532	))
=	425.047

	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	))
=	789.062	-	406.098	-	( 4.925	-	max(0, 749.852	-	777.559	+	4.925	))
=	378.039

Litian Pictures 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 )
=	-9.166 * ( 1 - -0.12% )	/	( (378.039	+	360.261)	/ 2 )
=	-9.1769992	/	369.15
=	-2.49 %

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	))
=	789.062	-	406.098	-	( 4.925	-	max(0, 749.852	-	777.559	+	4.925	))
=	378.039

	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	))
=	762.276	-	399.394	-	( 2.621	-	max(0, 736.327	-	752.996	+	2.621	))
=	360.261

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

Litian Pictures Holdings (HKSE:09958) 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, Litian Pictures Holdings's WACC % is 8.73%. Litian Pictures Holdings's ROC % is -25.80% (calculated using TTM income statement data). Litian Pictures 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.

Litian Pictures Holdings ROC % Related Terms

Thank you for viewing the detailed overview of Litian Pictures Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Litian Pictures Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Litian Pictures Holdings Ltd (HKSE:09958) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 5A, Tongniu Dianying Industrial Park, Chaoyang District, Beijing, CHN

Website

https://www.litian.tv

Litian Pictures Holdings Ltd is a drama series distribution company in the People's Republic of China. It licenses the broadcasting rights of self-produced and outright-purchased drama series. In addition, it is involved in other businesses, which include selling drama series scripts; acting as a distribution agent of the broadcasting rights of TV series; and investing in drama series in which it acts as a non-executive producer. It operates in three segments namely, Self-produced drama series; Outright-purchased drama series; and Others. It derives all its revenue from the production, distribution, and licensing of broadcasting rights of drama series in China.

Executives

Tian Tian	2201 Interest of corporation controlled by you
Yuan Li	2201 Interest of corporation controlled by you
Litian Century Media Co. Ltd.	2101 Beneficial owner
Marshal Investment Co. Ltd.	2101 Beneficial owner
Joint Fortune Huayi Emerging Industry Investment Co. Ltd.	2101 Beneficial owner
Li Yiwei	2201 Interest of corporation controlled by you
Xie Ailong	2201 Interest of corporation controlled by you

Litian Pictures Holdings Headlines

No Headlines