ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hutchison Whampoa's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2014 was 5.41%.
As of today (2024-06-23), Hutchison Whampoa's WACC % is 0.00%. Hutchison Whampoa's ROIC % is 0.00% (calculated using TTM income statement data).
Hutchison Whampoa earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hutchison Whampoa ROIC % Historical Data
The historical data trend for Hutchison Whampoa'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.
Competitive Comparison of Hutchison Whampoa's ROIC %
For the Department Stores subindustry, Hutchison Whampoa'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.
Hutchison Whampoa's ROIC % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hutchison Whampoa's ROIC % distribution charts can be found below:
* The bar in red indicates where Hutchison Whampoa's ROIC % falls into.
Hutchison Whampoa ROIC % Calculation
Hutchison Whampoa's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2014) data.
* 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.
Hutchison Whampoa (FRA:HUWH) 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, Hutchison Whampoa's WACC % is 0.00%. Hutchison Whampoa'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.
Hutchison Whampoa ROIC % Related Terms
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Hutchison Whampoa Ltd is a multinational conglomerate engaged in the development, innovation and technology in various sector. The Company has six businesses segments: ports and related services, property and hotels, retail, infrastructure, energy, and telecommunications. The Company holds interests in 52 ports comprising 278 operational berths in 26 countries, including container terminals operating in five of the 10 busiest container ports in the world. It also engages in mid-stream operations, river trade, cruise terminal operations and ports related logistics services. It develops and invests in real estate projects, ranging from landmark office buildings to luxury residential properties. It holds a rental property portfolio of approximately 14.0 million square feet of office, commercial, industrial and residential premises, primarily in Hong Kong, as well as interests in a number of joint-venture developments in Mainland China and selective overseas markets. The Company has over 10,500 retail stores in 25 markets worldwide. Its retail portfolio comprises health and beauty products, supermarkets, consumer electronics and electrical appliances. The Company's infrastructure business operates mainly in Hong Kong, the United Kingdom, the Netherlands, the Mainland, Australia, New Zealand and Canada. The Company's investments in energy are principally in Canada, the United States, the Mainland, Taiwan, Greenland and Indonesia. Husky Energy Inc is a listed Canadian-based integrated energy and energy related company. The Company is an operator of mobile telecommunication and data services, and a mobile broadband technology in the world. It is also an owner and operator of fibre-optic fixed line networks in Hong Kong.
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