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HENGY (Hengdeli Holdings) ROIC % : -0.17% (As of Jun. 2024)


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What is Hengdeli 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 %. Hengdeli Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -0.17%.

As of today (2024-12-13), Hengdeli Holdings's WACC % is 3.79%. Hengdeli Holdings's ROIC % is -1.29% (calculated using TTM income statement data). Hengdeli Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Hengdeli Holdings ROIC % Historical Data

The historical data trend for Hengdeli 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.

Hengdeli Holdings ROIC % Chart

Hengdeli Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.29 -19.86 -1.31 -2.94 -0.84

Hengdeli 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.65 -3.63 -1.45 -0.47 -0.17

Competitive Comparison of Hengdeli Holdings's ROIC %

For the Conglomerates subindustry, Hengdeli 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.


Hengdeli Holdings's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hengdeli Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Hengdeli Holdings's ROIC % falls into.



Hengdeli Holdings ROIC % Calculation

Hengdeli Holdings'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 )
=-2.29 * ( 1 - -5.89% )/( (287.669 + 289.958)/ 2 )
=-2.424881/288.8135
=-0.84 %

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))
=505.73 - 27.258 - ( 190.803 - max(0, 39.373 - 335.508+190.803))
=287.669

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))
=504.07 - 29.256 - ( 184.856 - max(0, 44.079 - 303.962+184.856))
=289.958

Hengdeli 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 )
=-6.7 * ( 1 - 92.49% )/( (289.958 + 303.885)/ 2 )
=-0.50317/296.9215
=-0.17 %

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))
=504.07 - 29.256 - ( 184.856 - max(0, 44.079 - 303.962+184.856))
=289.958

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))
=504.025 - 25.597 - ( 174.543 - max(0, 41.389 - 301.229+174.543))
=303.885

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


Hengdeli Holdings  (OTCPK:HENGY) 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, Hengdeli Holdings's WACC % is 3.79%. Hengdeli Holdings's ROIC % is -1.29% (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.


Hengdeli Holdings ROIC % Related Terms

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Hengdeli Holdings Business Description

Traded in Other Exchanges
Address
28 Canton Road, Room 301, 3rd Floor, Lippo Sun Plaza, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Hengdeli Holdings Ltd is predominantly focused on the manufacturing of high-end consuming accessories, the construction of high-end consuming service platforms, international commodity trading, and its related supply chain services. The operating segments of the company are; High-end consuming accessories which is engaged in the manufacturing of watch accessories, and shop design and decoration services business; and the Commodity trading segment which is engaged in the trading of iron ore and coal. Geographically, the company generates a majority of its revenue from Mainland China and the rest from Hong Kong.

Hengdeli Holdings Headlines

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