Fortune Asia Group (ASX:FYA) ROIC % : -14.05% (As of Jun. 2018)

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What is Fortune Asia Group ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fortune Asia Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2018 was -14.05%.

As of today (2024-06-10), Fortune Asia Group's WACC % is 0.00%. Fortune Asia Group's ROIC % is 0.00% (calculated using TTM income statement data). Fortune Asia Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fortune Asia Group ROIC % Historical Data

The historical data trend for Fortune Asia Group's ROIC % 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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Fortune Asia Group ROIC % Chart

Fortune Asia Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

ROIC %

-3.69

-13.93

-40.44

-14.70

-13.74

Fortune Asia Group Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18
ROIC %	Get a 7-Day Free Trial				-70.93	-13.92	-15.82	-14.05	-13.23

Competitive Comparison of Fortune Asia Group's ROIC %

For the Other Industrial Metals & Mining subindustry, Fortune Asia Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fortune Asia Group's ROIC % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Fortune Asia Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Fortune Asia Group's ROIC % falls into.

Fortune Asia Group ROIC % Calculation

Fortune Asia Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROIC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-0.247 * ( 1 - 0% )	/	( (1.762	+	1.833)	/ 2 )
=	-0.247	/	1.7975
=	-13.74 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	2.416	-	0.506	-	( 0.64	-	max(0, 0.506	-	0.654	+	0.64	))
=	1.762

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	2.158	-	0.517	-	( 0.295	-	max(0, 0.517	-	0.325	+	0.295	))
=	1.833

Fortune Asia Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2018 is calculated as:

	ROIC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2017 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	-0.252 * ( 1 - 0% )	/	( (1.762	+	1.825)	/ 2 )
=	-0.252	/	1.7935
=	-14.05 %

where

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	2.416	-	0.506	-	( 0.64	-	max(0, 0.506	-	0.654	+	0.64	))
=	1.762

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	2.334	-	0.503	-	( 0.418	-	max(0, 0.503	-	0.509	+	0.418	))
=	1.825

Note: The Operating Income data used here is two times the semi-annual (Jun. 2018) data.

Fortune Asia Group (ASX:FYA) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Fortune Asia Group's WACC % is 0.00%. Fortune Asia Group's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Fortune Asia Group ROIC % Related Terms

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Fortune Asia Group (ASX:FYA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Fortune Asia Group Ltd (ASX:FYA) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

377 Kent Street, Suite 525, Sydney, NSW, AUS, 2000

Website

http://www.ergau.com

Fortune Asia Group Ltd, formerly Emperor Range Group Ltd is engaged in mining and exploration at the tenements situated in Xinjiang Uygur Autonomous Region of the People's Republic of China.

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