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eSun Holdings (HKSE:00571) ROIC % : -59.98% (As of Jul. 2024)


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What is eSun 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 %. eSun Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was -59.98%.

As of today (2025-03-15), eSun Holdings's WACC % is 3.95%. eSun Holdings's ROIC % is -35.52% (calculated using TTM income statement data). eSun Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


eSun Holdings ROIC % Historical Data

The historical data trend for eSun 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.

eSun Holdings ROIC % Chart

eSun Holdings Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.41 -24.20 -19.88 -12.68 -37.20

eSun Holdings Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
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 -28.12 -10.18 -14.52 -12.77 -59.98

Competitive Comparison of eSun Holdings's ROIC %

For the Entertainment subindustry, eSun 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.


eSun Holdings's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, eSun Holdings's ROIC % distribution charts can be found below:

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



eSun Holdings ROIC % Calculation

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

ROIC % (A: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2023 ) + Invested Capital (A: Jul. 2024 ))/ count )
=-476.958 * ( 1 - -0.26% )/( (1476.757 + 1094.279)/ 2 )
=-478.1980908/1285.518
=-37.20 %

where

Invested Capital(A: Jul. 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))
=2510.989 - 535.17 - ( 743.085 - max(0, 880.332 - 1379.394+743.085))
=1476.757

Invested Capital(A: Jul. 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))
=1836.303 - 575.527 - ( 394.487 - max(0, 922.895 - 1089.392+394.487))
=1094.279

eSun Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

ROIC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=-767.322 * ( 1 - -0.14% )/( (1467.777 + 1094.279)/ 2 )
=-768.3962508/1281.028
=-59.98 %

where

Invested Capital(Q: Jan. 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))
=2328.094 - 519.339 - ( 530.631 - max(0, 924.097 - 1265.075+530.631))
=1467.777

Invested Capital(Q: Jul. 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))
=1836.303 - 575.527 - ( 394.487 - max(0, 922.895 - 1089.392+394.487))
=1094.279

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


eSun Holdings  (HKSE:00571) 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, eSun Holdings's WACC % is 3.95%. eSun Holdings's ROIC % is -35.52% (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.


eSun Holdings ROIC % Related Terms

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eSun Holdings Business Description

Traded in Other Exchanges
N/A
Address
680 Cheung Sha Wan Road, 11th Floor, Lai Sun Commercial Centre, Kowloon, HKG
eSun Holdings Ltd is an investment holding company. The company's operating segments include Media and entertainment, Film and TV program, Cinema operation, and Corporate and others. It generates maximum revenue from the Cinema operation segment which engages in the operation of cinemas in Hong Kong and the Chinese Mainland. Geographically, the company generates a majority of its revenue from Hong Kong and the rest from Mainland China and Macau, and other regions.
Executives
Lai Sun Development Company Limited
Lai Sun Garment (international) Limited
Lam Kin Ngok Peter
Yu Cheuk Yi 2103 Interests held jointly with another person
Yu Siu Yuk 2103 Interests held jointly with another person

eSun Holdings Headlines

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