Hoang Anh Gia Lai JSC (STC:HAG) ROC % : 9.35% (As of Sep. 2024)

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What is Hoang Anh Gia Lai JSC 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 %. Hoang Anh Gia Lai JSC's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 9.35%.

As of today (2024-12-13), Hoang Anh Gia Lai JSC's WACC % is 11.22%. Hoang Anh Gia Lai JSC's ROC % is 6.66% (calculated using TTM income statement data). Hoang Anh Gia Lai JSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hoang Anh Gia Lai JSC ROC % Historical Data

The historical data trend for Hoang Anh Gia Lai JSC'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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Hoang Anh Gia Lai JSC ROC % Chart

Hoang Anh Gia Lai JSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-3.29

-5.85

-4.18

11.57

5.44

Hoang Anh Gia Lai JSC Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															7.08	2.35	7.94	8.15	9.35

Hoang Anh Gia Lai JSC ROC % Calculation

Hoang Anh Gia Lai JSC'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 )
=	917851.338 * ( 1 - 0.62% )	/	( (16426440.756	+	17083698.316)	/ 2 )
=	912160.6597044	/	16755069.536
=	5.44 %

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	))
=	19798387.553	-	4551449.371	-	( 72372.525	-	max(0, 9218063.487	-	8038560.913	+	72372.525	))
=	16426440.756

	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	))
=	20903255.29	-	4761435.668	-	( 41812.548	-	max(0, 9710404.28	-	8768525.586	+	41812.548	))
=	17083698.316

Hoang Anh Gia Lai JSC's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	2007676.376 * ( 1 - 0% )	/	( (21094861.774	+	21833623.958)	/ 2 )
=	2007676.376	/	21464242.866
=	9.35 %

where

	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	))
=	21559728.315	-	1234670.307	-	( 136029.723	-	max(0, 9096892.447	-	8327088.681	+	136029.723	))
=	21094861.774

	Invested Capital		(Q: Sep. 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	))
=	22492104.257	-	1321229.253	-	( 113974.451	-	max(0, 9530292.809	-	8867543.855	+	113974.451	))
=	21833623.958

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Hoang Anh Gia Lai JSC (STC:HAG) 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, Hoang Anh Gia Lai JSC's WACC % is 11.22%. Hoang Anh Gia Lai JSC's ROC % is 6.66% (calculated using TTM income statement data). Hoang Anh Gia Lai JSC 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.

Hoang Anh Gia Lai JSC ROC % Related Terms

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Hoang Anh Gia Lai JSC Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Hoang Anh Gia Lai JSC (STC:HAG) » Definitions » ROC %

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Address

15 Truong Chinh Street, Phu Dong Ward, Gia Lai Province, Pleiku, VNM

Website

http://www.hagl.com.vn

Hoang Anh Gia Lai JSC is a Vietnam-based company engaged in the development, sale, and lease of residential and commercial properties. It develops, rents, and trades in real estate, including the construction of headquarters, office buildings, amongst others. The group is organised into seven business segments namely, Real Estate, Production, Trading and Services, Construction, Power, Mining, and Agriculture. It also has presence in sport and entertainment industries. Other activities include forestation, rubber cultivation and latex processing, electricity generation and distribution, as well as the provision of hotel and resort services.

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