MSW (Ming Shing Group Holdings) ROC % : 39.40% (As of Sep. 2023)

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What is Ming Shing Group 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 %. Ming Shing Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 39.40%.

As of today (2024-09-25), Ming Shing Group Holdings's WACC % is 0.00%. Ming Shing Group Holdings's ROC % is 0.00% (calculated using TTM income statement data). Ming Shing Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ming Shing Group Holdings ROC % Historical Data

The historical data trend for Ming Shing Group 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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Ming Shing Group Holdings ROC % Chart

Ming Shing Group Holdings Annual Data

Trend

Mar21

Mar22

Mar23

ROC %

46.07

77.62

51.48

Ming Shing Group Holdings Semi-Annual Data
	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial			67.63	82.49	80.06	31.36	39.40

Ming Shing Group Holdings ROC % Calculation

Ming Shing Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	2.639 * ( 1 - 14.4% )	/	( (3.092	+	5.685)	/ 2 )
=	2.258984	/	4.3885
=	51.48 %

where

	Invested Capital		(A: Mar. 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	))
=	5.599	-	2.289	-	( 0.218	-	max(0, 3.96	-	5.185	+	0.218	))
=	3.092

	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	))
=	8.282	-	2.273	-	( 0.324	-	max(0, 6.182	-	6.915	+	0.324	))
=	5.685

Ming Shing Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	2.766 * ( 1 - 19.55% )	/	( (5.685	+	5.611)	/ 2 )
=	2.225247	/	5.648
=	39.40 %

where

	Invested Capital		(Q: 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	))
=	8.282	-	2.273	-	( 0.324	-	max(0, 6.182	-	6.915	+	0.324	))
=	5.685

	Invested Capital		(Q: Sep. 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	))
=	8.374	-	2.345	-	( 0.418	-	max(0, 5.323	-	6.341	+	0.418	))
=	5.611

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

Ming Shing Group Holdings (NAS:MSW) 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, Ming Shing Group Holdings's WACC % is 0.00%. Ming Shing Group Holdings's ROC % is 0.00% (calculated using TTM income statement data). Ming Shing Group 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.

Ming Shing Group Holdings ROC % Related Terms

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Ming Shing Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ming Shing Group Holdings Ltd (NAS:MSW) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

16 Tai Yau Street, 8th Floor, Cheong Tai Factory Building, San Po Kong, Kowloon, Hong Kong, HKG

Website

https://www.ms100.com.hk

Ming Shing Group Holdings Ltd is a holding company, which is primarily operated through its indirectly wholly-owned Hong Kong Operating Subsidiaries, MS (HK) Engineering Limited and MS Engineering Co., Limited. It is engaged in wet trades works, such as plastering works, tile laying works, brick laying works, floor screeding works and marble works. the company is mainly engaged in private-sector projects in Hong Kong. Its private sector projects mainly involve private residential developments and commercial developments. The project owners of its private sector projects are generally property developers, and its customers are generally main contractors and wet trades work subcontractors engaged under such projects.