Long Bon Development Co (TPE:2514) ROC % : 1.57% (As of Dec. 2024)

View and export this data going back to 1992. Start your Free Trial

What is Long Bon Development Co 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 %. Long Bon Development Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 1.57%.

As of today (2025-04-01), Long Bon Development Co's WACC % is 4.04%. Long Bon Development Co's ROC % is 3.87% (calculated using TTM income statement data). Long Bon Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Long Bon Development Co ROC % Historical Data

The historical data trend for Long Bon Development Co'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.

* Premium members only.

Long Bon Development Co ROC % Chart

Long Bon Development Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

Get a 7-Day Free Trial

2.89

1.68

0.83

1.00

3.79

Long Bon Development Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-45.73	6.10	2.73	5.16	1.57

Long Bon Development Co ROC % Calculation

Long Bon Development Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	1593.679 * ( 1 - 19.28% )	/	( (35332.254	+	32635.485)	/ 2 )
=	1286.4176888	/	33983.8695
=	3.79 %

where

	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	))
=	39772.466	-	3806.895	-	( 5261.812	-	max(0, 15708.502	-	16341.819	+	5261.812	))
=	35332.254

	Invested Capital		(A: Dec. 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	))
=	39759.146	-	3842.247	-	( 8125.648	-	max(0, 12938.78	-	16220.194	+	8125.648	))
=	32635.485

Long Bon Development Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	568.656 * ( 1 - 10.49% )	/	( (32059.542	+	32635.485)	/ 2 )
=	509.0039856	/	32347.5135
=	1.57 %

where

	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	))
=	39198.695	-	3746.94	-	( 6901.937	-	max(0, 12530.612	-	15922.825	+	6901.937	))
=	32059.542

	Invested Capital		(Q: Dec. 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	))
=	39759.146	-	3842.247	-	( 8125.648	-	max(0, 12938.78	-	16220.194	+	8125.648	))
=	32635.485

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

Long Bon Development Co (TPE:2514) 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, Long Bon Development Co's WACC % is 4.04%. Long Bon Development Co's ROC % is 3.87% (calculated using TTM income statement data). Long Bon Development Co 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.

Long Bon Development Co ROC % Related Terms

Thank you for viewing the detailed overview of Long Bon Development Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Long Bon Development Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Long Bon Development Co Ltd (TPE:2514) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Zhongxiao West Road, 9th Floor, No. 50, Section 1, Zhongzheng District, Taipei, TWN, 100

Website

http://www.longbon.com.tw

Long Bon Development Co Ltd is a Taiwan-based company with operations in commercial property and car-park leasing, property developments, hotel management, and online shopping services. The company is also engaged in the management of the Qiaoyuan clubhouse, including guest rooms, conference rooms, and education and training rooms. Investment, Funeral, and Recreation were the group's four segments. Construction projects are the focus of the construction segment. The investment segment invests in financial instruments, while the funeral division provides funeral services and other services. Sports facilities are provided by the recreation segment. The majority of the revenue of the group is from the construction segment.

Long Bon Development Co Headlines

No Headlines