CMGHF (Chaoda Modern Agriculture (Holdings)) ROIC % : -22.25% (As of Jun. 2024)

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

What is Chaoda Modern Agriculture (Holdings) 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 %. Chaoda Modern Agriculture (Holdings)'s annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -22.25%.

As of today (2024-12-13), Chaoda Modern Agriculture (Holdings)'s WACC % is 11.35%. Chaoda Modern Agriculture (Holdings)'s ROIC % is -20.55% (calculated using TTM income statement data). Chaoda Modern Agriculture (Holdings) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Chaoda Modern Agriculture (Holdings) ROIC % Historical Data

The historical data trend for Chaoda Modern Agriculture (Holdings)'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.

* Premium members only.

Chaoda Modern Agriculture (Holdings) ROIC % Chart

Chaoda Modern Agriculture (Holdings) Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROIC %

Get a 7-Day Free Trial

-23.53

-23.38

-19.06

-14.34

-19.19

Chaoda Modern Agriculture (Holdings) 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															-19.98	-19.14	-14.97	-20.51	-22.25

Competitive Comparison of Chaoda Modern Agriculture (Holdings)'s ROIC %

For the Farm Products subindustry, Chaoda Modern Agriculture (Holdings)'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.

Chaoda Modern Agriculture (Holdings)'s ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Chaoda Modern Agriculture (Holdings)'s ROIC % distribution charts can be found below:

* The bar in red indicates where Chaoda Modern Agriculture (Holdings)'s ROIC % falls into.

Chaoda Modern Agriculture (Holdings) ROIC % Calculation

Chaoda Modern Agriculture (Holdings)'s annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROIC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-3.553 * ( 1 - -3.28% )	/	( (19.598	+	18.647)	/ 2 )
=	-3.6695384	/	19.1225
=	-19.19 %

where

	Invested Capital		(A: Jun. 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	))
=	34.006	-	1.557	-	( 12.851	-	max(0, 4.669	-	17.828	+	12.851	))
=	19.598

	Invested Capital		(A: 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	))
=	32.303	-	1.39	-	( 12.266	-	max(0, 4.47	-	17.379	+	12.266	))
=	18.647

Chaoda Modern Agriculture (Holdings)'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 )
=	-3.758 * ( 1 - -1.65% )	/	( (15.693	+	18.647)	/ 2 )
=	-3.820007	/	17.17
=	-22.25 %

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	))
=	32.98	-	4.179	-	( 14.891	-	max(0, 4.44	-	17.548	+	14.891	))
=	15.693

	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	))
=	32.303	-	1.39	-	( 12.266	-	max(0, 4.47	-	17.379	+	12.266	))
=	18.647

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

Chaoda Modern Agriculture (Holdings) (OTCPK:CMGHF) 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, Chaoda Modern Agriculture (Holdings)'s WACC % is 11.35%. Chaoda Modern Agriculture (Holdings)'s ROIC % is -20.55% (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.

Chaoda Modern Agriculture (Holdings) ROIC % Related Terms

Thank you for viewing the detailed overview of Chaoda Modern Agriculture (Holdings)'s ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Chaoda Modern Agriculture (Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Chaoda Modern Agriculture (Holdings) Ltd (OTCPK:CMGHF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

00682:Hong Kong CHA:Germany

Address

133 Wan Chai Road, Room B, 21st Floor, Times Media Centre, Wanchai, Hong Kong, HKG

Website

http://www.chaoda.hk.cn

Chaoda Modern Agriculture (Holdings) Ltd operates as an investment holding company. Along with its subsidiaries, it engages in the production and sale of agricultural products. The company's main businesses include the growing and sales of crops, as well as the breeding and sales of livestock. Its product offerings include various vegetables and fruits such as broccoli, sweet corn, cabbage, pumpkin, lettuce, and tangerine, among others which are sold under the Chaoda brand. The firm earns a majority of its revenue from the sales of crops in Hong Kong.