Hua Lien International (Holding) Co (HKSE:00969) ROIC % : -280.88% (As of Dec. 2023)

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What is Hua Lien International (Holding) Co 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 %. Hua Lien International (Holding) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -280.88%.

As of today (2024-06-25), Hua Lien International (Holding) Co's WACC % is 5.76%. Hua Lien International (Holding) Co's ROIC % is -45.63% (calculated using TTM income statement data). Hua Lien International (Holding) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hua Lien International (Holding) Co ROIC % Historical Data

The historical data trend for Hua Lien International (Holding) Co'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.

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Hua Lien International (Holding) Co ROIC % Chart

Hua Lien International (Holding) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-12.73

-14.08

201.05

-146.70

-47.51

Hua Lien International (Holding) Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															166.44	-1.93	-154.50	288.67	-280.88

Competitive Comparison of Hua Lien International (Holding) Co's ROIC %

For the Confectioners subindustry, Hua Lien International (Holding) Co'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.

Hua Lien International (Holding) Co's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hua Lien International (Holding) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Hua Lien International (Holding) Co's ROIC % falls into.

Hua Lien International (Holding) Co ROIC % Calculation

Hua Lien International (Holding) Co'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 )
=	-6.191 * ( 1 - 0% )	/	( (8.3039999999999	+	17.757)	/ 2 )
=	-6.191	/	13.0305
=	-47.51 %

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	))
=	107.04	-	1134.064	-	( 44.734	-	max(0, 1136	-	100.672	+	44.734	))
=	8.3039999999999

	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	))
=	86.071	-	1151.904	-	( 37.464	-	max(0, 1163.89	-	80.3	+	37.464	))
=	17.757

Hua Lien International (Holding) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-45.502 * ( 1 - 0% )	/	( (14.643	+	17.757)	/ 2 )
=	-45.502	/	16.2
=	-280.88 %

where

	Invested Capital		(Q: 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	))
=	122.167	-	1150.041	-	( 43.438	-	max(0, 1158.175	-	115.658	+	43.438	))
=	14.643

	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	))
=	86.071	-	1151.904	-	( 37.464	-	max(0, 1163.89	-	80.3	+	37.464	))
=	17.757

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Hua Lien International (Holding) Co (HKSE:00969) 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, Hua Lien International (Holding) Co's WACC % is 5.76%. Hua Lien International (Holding) Co's ROIC % is -45.63% (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.

Hua Lien International (Holding) Co ROIC % Related Terms

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Hua Lien International (Holding) Co (HKSE:00969) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Hua Lien International (Holding) Co Ltd (HKSE:00969) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

19 Des Voeux Road Central, Room 1701, 17th Floor, World-Wide House, Central, Hong Kong, HKG

Website

http://www.irasia.com/listco/hk/hualien/index.htm

Hua Lien International (Holding) Co Ltd is an investment holding company. It is principally engaged in the growing of sugar cane and the manufacture of sugar. The company operates through three segments namely Supporting services; the Sugar business; and the Ethanol business. It generates maximum revenue from the Sugar business segment. Geographically, it derives a majority of its revenue from Jamaica.

Executives

State Development & Investment Corp., Ltd. (formerly State Development & Investment Corp.)	2106 Person having a security interest in shares
State-owned Assets Supervision And Administration Commission Of The State Council	2106 Person having a security interest in shares
Complant International Sugar Industry Co., Ltd.	2101 Beneficial owner
Xinjiang Botai Energy Company Limited	2201 Interest of corporation controlled by you
Zeng Wei	2201 Interest of corporation controlled by you
China National Complete Plant Import And Export Group Corporation Limited	2106 Person having a security interest in shares

Hua Lien International (Holding) Co (HKSE:00969) Headlines

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