Fosun Tourism Group (STU:6T8) ROC % : 4.16% (As of Jun. 2024)

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What is Fosun Tourism Group 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 %. Fosun Tourism Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 4.16%.

As of today (2024-12-15), Fosun Tourism Group's WACC % is 5.81%. Fosun Tourism Group's ROC % is 3.32% (calculated using TTM income statement data). Fosun Tourism Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fosun Tourism Group ROC % Historical Data

The historical data trend for Fosun Tourism Group'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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Fosun Tourism Group ROC % Chart

Fosun Tourism Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.97

-1.22

-1.00

1.98

2.75

Fosun Tourism Group Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial												1.34	2.78	3.79	1.94	4.16

Fosun Tourism Group ROC % Calculation

Fosun Tourism Group'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 )
=	200.632 * ( 1 - 29.27% )	/	( (5075.631	+	5249.566)	/ 2 )
=	141.9070136	/	5162.5985
=	2.75 %

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	))
=	5135.897	-	759.393	-	( 394.209	-	max(0, 1979.73	-	1280.603	+	394.209	))
=	5075.631

	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	))
=	4960.246	-	680.448	-	( 383.054	-	max(0, 2069.41	-	1099.642	+	383.054	))
=	5249.566

Fosun Tourism Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	262.834 * ( 1 - 18.22% )	/	( (5249.566	+	5082.289)	/ 2 )
=	214.9456452	/	5165.9275
=	4.16 %

where

	Invested Capital		(Q: 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	))
=	4960.246	-	680.448	-	( 383.054	-	max(0, 2069.41	-	1099.642	+	383.054	))
=	5249.566

	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	))
=	4795.286	-	401.72	-	( 453.433	-	max(0, 1805.489	-	1116.766	+	453.433	))
=	5082.289

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Fosun Tourism Group (STU:6T8) 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, Fosun Tourism Group's WACC % is 5.81%. Fosun Tourism Group's ROC % is 3.32% (calculated using TTM income statement data). Fosun Tourism Group 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.

Fosun Tourism Group ROC % Related Terms

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Fosun Tourism Group Business Description

Industry

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01992:Hong Kong

Address

3 Garden Road, Room 808 & 2101-06, ICBC Tower, Central, Hong Kong, HKG, 210010

Website

https://www.fosunholiday.com

Fosun Tourism Group is predominantly engaged in providing pioneering and family-focused tourism and leisure solutions. The company is organized into business units based on its products and services and has four reportable operating segments; Club Med and others, Atlantis Sanya, Vacation asset management center segment, and Foryou Club and other services segment. Club Med and others segment that generates key revenue consists of the Club Med resort operation business and other relevant businesses such as transportation service, resort construction service, youth play, and learning service. Geographically, the company generates a majority of its revenue from its businesses in Europe, Middle East and Africa followed by Asia Pacific, and America.

Fosun Tourism Group Headlines

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