ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Man Yue Technology Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -0.38%.
As of today (2024-05-07), Man Yue Technology Holdings's WACC % is 0.82%. Man Yue Technology Holdings's ROIC % is 0.19% (calculated using TTM income statement data).
Man Yue Technology Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Man Yue Technology Holdings ROIC % Historical 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.
Competitive Comparison of Man Yue Technology Holdings's ROIC %
For the Electronic Components subindustry, Man Yue Technology 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.
Man Yue Technology Holdings's ROIC % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Man Yue Technology Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Man Yue Technology Holdings's ROIC % falls into.
Man Yue Technology Holdings ROIC % Calculation
Man Yue Technology Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Jun. 2023) 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.
Man Yue Technology Holdings (HKSE:00894) 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, Man Yue Technology Holdings's WACC % is 0.82%. Man Yue Technology Holdings's ROIC % is 0.19% (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.
Man Yue Technology Holdings ROIC % Related Terms
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Man Yue Technology Holdings (HKSE:00894) Business Description
Man Yue Technology Holdings Ltd is an investment holding company. Together with its subsidiaries, the company manufactures electronic components. The company is engaged in the manufacture and sale of high technology electronic components, including Aluminum Electrolytic Capacitors (E-Caps), Conductive Polymer Aluminum Solid Capacitors (Polymer Caps), and other electronic components. It offers products under the brand name SAMXON and X-CON. Its geographical segments are Hong Kong, Mainland China, Taiwan, Southeast Asia, Korea, the United States, Europe, and Other countries, of which the majority of its revenue comes from Mainland China.
Man Yue Technology Holdings (HKSE:00894) Headlines
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