CHDGF (COSCO SHIPPING International (Hong Kong) Co) ROIC % : 9.36% (As of Jun. 2024)

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What is COSCO SHIPPING International (Hong Kong) Co 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 %. COSCO SHIPPING International (Hong Kong) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 9.36%.

As of today (2024-12-14), COSCO SHIPPING International (Hong Kong) Co's WACC % is 6.16%. COSCO SHIPPING International (Hong Kong) Co's ROIC % is 5.48% (calculated using TTM income statement data). COSCO SHIPPING International (Hong Kong) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

COSCO SHIPPING International (Hong Kong) Co ROIC % Historical Data

The historical data trend for COSCO SHIPPING International (Hong Kong) Co'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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COSCO SHIPPING International (Hong Kong) Co ROIC % Chart

COSCO SHIPPING International (Hong Kong) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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4.11

4.19

8.48

6.97

4.87

COSCO SHIPPING International (Hong Kong) Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial															6.96	7.35	8.28	1.43	9.36

Competitive Comparison of COSCO SHIPPING International (Hong Kong) Co's ROIC %

For the Marine Shipping subindustry, COSCO SHIPPING International (Hong Kong) Co'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.

COSCO SHIPPING International (Hong Kong) Co's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, COSCO SHIPPING International (Hong Kong) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where COSCO SHIPPING International (Hong Kong) Co's ROIC % falls into.

COSCO SHIPPING International (Hong Kong) Co ROIC % Calculation

COSCO SHIPPING International (Hong Kong) Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	17.227 * ( 1 - 8.17% )	/	( (349.486	+	300.456)	/ 2 )
=	15.8195541	/	324.971
=	4.87 %

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	))
=	1186.13	-	91.767	-	( 744.877	-	max(0, 133.405	-	1018.807	+	744.877	))
=	349.486

	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	))
=	1178.677	-	90.736	-	( 787.485	-	max(0, 120.182	-	994.837	+	787.485	))
=	300.456

COSCO SHIPPING International (Hong Kong) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	33.888 * ( 1 - 9.9% )	/	( (300.456	+	352.197)	/ 2 )
=	30.533088	/	326.3265
=	9.36 %

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	))
=	1178.677	-	90.736	-	( 787.485	-	max(0, 120.182	-	994.837	+	787.485	))
=	300.456

	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	))
=	1226.918	-	132.708	-	( 742.013	-	max(0, 148.687	-	989.14	+	742.013	))
=	352.197

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

COSCO SHIPPING International (Hong Kong) Co (OTCPK:CHDGF) 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, COSCO SHIPPING International (Hong Kong) Co's WACC % is 6.16%. COSCO SHIPPING International (Hong Kong) Co's ROIC % is 5.48% (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.

COSCO SHIPPING International (Hong Kong) Co ROIC % Related Terms

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COSCO SHIPPING International (Hong Kong) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » COSCO SHIPPING International (Hong Kong) Co Ltd (OTCPK:CHDGF) » Definitions » ROIC %

Traded in Other Exchanges

00517:Hong Kong CSB:Germany

Address

183 Queen's Road Central, 47th Floor, COSCO Tower, Hong Kong, HKG

Website

https://hk.coscoshipping.com

COSCO SHIPPING International (Hong Kong) Co Ltd is a Hong Kong-based company engaged in services relating to shipbuilding, ship trading, and chartering for the fleet. It carries its operations in six segments including Coatings, Marine equipment and spare parts, Ship trading agency, Insurance brokerage, Insurance brokerage and Intelligent shipping services. The majority of its revenue comes from the sale of Marine equipment and spare parts. The company has a business network in Mainland China, Hong Kong and other countries.

COSCO SHIPPING International (Hong Kong) Co Headlines

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