Asia Power (SGX:A03) ROC % : 6.13% (As of Sep. 2013)

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What is Asia Power 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 %. Asia Power's annualized return on capital (ROC %) for the quarter that ended in Sep. 2013 was 6.13%.

As of today (2024-06-17), Asia Power's WACC % is 0.00%. Asia Power's ROC % is 0.00% (calculated using TTM income statement data). Asia Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Asia Power ROC % Historical Data

The historical data trend for Asia Power'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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Asia Power ROC % Chart

Asia Power Annual Data

Trend

Jun03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROC %

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13.32

9.82

4.10

5.23

3.52

Asia Power Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROC %	Get a 7-Day Free Trial										6.39	-12.16	8.34	0.91	6.13

Asia Power ROC % Calculation

Asia Power's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	3.191 * ( 1 - -118.95% )	/	( (202.67	+	194.497)	/ 2 )
=	6.9866945	/	198.5835
=	3.52 %

where

	Invested Capital		(A: Dec. 2011 )
=	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	))
=	270.174	-	17.866	-	( 53.935	-	max(0, 32.844	-	82.482	+	53.935	))
=	202.67

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	235.312	-	14.969	-	( 28.856	-	max(0, 34.324	-	60.17	+	28.856	))
=	194.497

Asia Power's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2013 is calculated as:

	ROC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	14.32 * ( 1 - 16.15% )	/	( (196.392	+	195.502)	/ 2 )
=	12.00732	/	195.947
=	6.13 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	245.61	-	13.436	-	( 38.955	-	max(0, 27.449	-	63.231	+	38.955	))
=	196.392

	Invested Capital		(Q: Sep. 2013 )
=	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	))
=	250.227	-	16.566	-	( 43.627	-	max(0, 30.23	-	68.389	+	43.627	))
=	195.502

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data.

Asia Power (SGX:A03) 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, Asia Power's WACC % is 0.00%. Asia Power's ROC % is 0.00% (calculated using TTM income statement data). Asia Power 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.

Asia Power ROC % Related Terms

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Asia Power (SGX:A03) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Asia Power Corp Ltd (SGX:A03) » Definitions » ROC %

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Address

Website

http://www.asiapower.com.sg

Asia Power Corporation Limited is incorporated in Singapore. The Company is engaged in the business of ownership, management and operation of power plants in China. The Company operates under the following segments: Power plant operations which include owning, managing and operating power plants to generate and sell power, heat and steam; Power-related technology which includes design, manufacture and assembly of computerized automation systems which are used for the regulation of electricity flow and protection of power grids; Investment holding and others which include Holding of long-term investments and provision of power related business consultancy and management services.

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