Grand Harbour Marina (MAL:GHM) ROC % : 2.72% (As of Jun. 2023)

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What is Grand Harbour Marina 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 %. Grand Harbour Marina's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 2.72%.

As of today (2024-05-11), Grand Harbour Marina's WACC % is 6.80%. Grand Harbour Marina's ROC % is 4.22% (calculated using TTM income statement data). Grand Harbour Marina earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grand Harbour Marina ROC % Historical Data

The historical data trend for Grand Harbour Marina'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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Grand Harbour Marina ROC % Chart

Grand Harbour Marina Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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5.72

3.60

48.87

8.45

4.70

Grand Harbour Marina Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial															15.39	6.25	4.07	4.87	2.72

Grand Harbour Marina ROC % Calculation

Grand Harbour Marina's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	1.334 * ( 1 - 14.68% )	/	( (23.286	+	25.137)	/ 2 )
=	1.1381688	/	24.2115
=	4.70 %

where

	Invested Capital		(A: Dec. 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	))
=	26.342	-	0.589	-	( 2.467	-	max(0, 2.366	-	6.846	+	2.467	))
=	23.286

	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	))
=	28.742	-	0.511	-	( 4.032	-	max(0, 2.499	-	5.593	+	4.032	))
=	25.137

Grand Harbour Marina's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	1.35 * ( 1 - 50.21% )	/	( (25.137	+	24.319)	/ 2 )
=	0.672165	/	24.728
=	2.72 %

where

	Invested Capital		(Q: 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	))
=	28.742	-	0.511	-	( 4.032	-	max(0, 2.499	-	5.593	+	4.032	))
=	25.137

	Invested Capital		(Q: Jun. 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	))
=	28.203	-	0.577	-	( 4.124	-	max(0, 2.534	-	5.841	+	4.124	))
=	24.319

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Grand Harbour Marina (MAL:GHM) 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, Grand Harbour Marina's WACC % is 6.80%. Grand Harbour Marina's ROC % is 4.22% (calculated using TTM income statement data). Grand Harbour Marina 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.

Grand Harbour Marina ROC % Related Terms

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Grand Harbour Marina (MAL:GHM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Grand Harbour Marina PLC (MAL:GHM) » Definitions » ROC %

Comparable Companies

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Address

Vittoriosa Wharf, Vittoriosa, MLT, BRG 1721

Website

https://www.cnmarinas.com

Grand Harbour Marina PLC is a Malta-based marina company. The principal business activities of the company and its joint venture are the acquisition, development, operation, and management of marinas. The group has two reportable segments, Grand Harbour Marina and IC Cesme Marina. The business operates in each of these two operating segments in the ownership and operation of marina facilities providing berthing and ancillary services for yachts and super-yachts. It generates maximum revenue from the Grand Harbour Marina segment.