Leader Hill (Leader Hill) ROC % : -1,400.00% (As of Aug. 2022)

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What is Leader Hill 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 %. Leader Hill's annualized return on capital (ROC %) for the quarter that ended in Aug. 2022 was -1,400.00%.

As of today (2024-06-07), Leader Hill's WACC % is 0.00%. Leader Hill's ROC % is 0.00% (calculated using TTM income statement data). Leader Hill earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Leader Hill ROC % Historical Data

The historical data trend for Leader Hill'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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Leader Hill ROC % Chart

Leader Hill Annual Data

Trend

Nov17

Nov18

Nov19

Nov20

Nov21

ROC %

-300.00

-162.16

-75.86

-285.71

-3,400.00

Leader Hill Quarterly Data
	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22
ROC %	Get a 7-Day Free Trial															-160.00	-933.33	-	-	-1,400.00

Leader Hill ROC % Calculation

Leader Hill's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2021 is calculated as:

	ROC % (A: Nov. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2020 )	+	Invested Capital (A: Nov. 2021 ))	/ count )
=	-0.034 * ( 1 - 0% )	/	( (0.001	+	0)	/ 1 )
=	-0.034	/	0.001
=	-3,400.00 %

where

	Invested Capital		(A: Nov. 2020 )
=	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	))
=	0.003	-	0.01	-	( 0.001	-	max(0, 0.01	-	0.002	+	0.001	))
=	0.001

	Invested Capital		(A: Nov. 2021 )
=	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	))
=	0	-	0.033	-	( 0	-	max(0, 0.033	-	0	+	0	))
=	0

Leader Hill's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2022 is calculated as:

	ROC % (Q: Aug. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2022 )	+	Invested Capital (Q: Aug. 2022 ))	/ count )
=	-0.028 * ( 1 - 0% )	/	( (0	+	0.002)	/ 1 )
=	-0.028	/	0.002
=	-1,400.00 %

where

	Invested Capital		(Q: May. 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	))
=	0	-	0.048	-	( 0	-	max(0, 0.048	-	0	+	0	))
=	0

	Invested Capital		(Q: Aug. 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	))
=	0.003	-	0.058	-	( 0	-	max(0, 0.058	-	0.001	+	0	))
=	0.002

Note: The Operating Income data used here is four times the quarterly (Aug. 2022) data.

Leader Hill (OTCPK:LHIL) 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, Leader Hill's WACC % is 0.00%. Leader Hill's ROC % is 0.00% (calculated using TTM income statement data). Leader Hill 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.

Leader Hill ROC % Related Terms

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Leader Hill (Leader Hill) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Leader Hill Corp (OTCPK:LHIL) » Definitions » ROC %

Comparable Companies

AGNY TSE:9252 TSE:7922 XPAR:MLV4S JSE:ATI TSE:7369 ASX:MIL SGX:40W TSE:9087 HKSE:00309

Traded in Other Exchanges

N/A

Address

Room 0701, Unit 2, Building 11, Shui’an Xindu, Coastal Industrial Base, Liaoning Province, Yingkou, CHN, 115000

Website

http://www.leaderhill.com

Leader Hill Corp operates in the industry of business consulting that intends to assist start-up to mid-size companies in the East Asia region, with a focus on mainland China and Hong Kong. Its core services are divided into four categories: company formation, corporate secretarial and administration, accounting and bookkeeping, and general business consulting services.

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