Universe Entertainment And Culture Group Co (HKSE:01046) ROIC % : -3.16% (As of Dec. 2024)

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What is Universe Entertainment And Culture Group 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 %. Universe Entertainment And Culture Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -3.16%.

As of today (2025-04-06), Universe Entertainment And Culture Group Co's WACC % is 4.29%. Universe Entertainment And Culture Group Co's ROIC % is -2.94% (calculated using TTM income statement data). Universe Entertainment And Culture Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Universe Entertainment And Culture Group Co ROIC % Historical Data

The historical data trend for Universe Entertainment And Culture Group 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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Universe Entertainment And Culture Group Co ROIC % Chart

Universe Entertainment And Culture Group Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROIC %

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-2.10

21.38

-4.70

-2.92

-0.52

Universe Entertainment And Culture Group Co Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROIC %	Get a 7-Day Free Trial															-3.21	-2.32	0.01	-2.49	-3.16

Competitive Comparison of Universe Entertainment And Culture Group Co's ROIC %

For the Entertainment subindustry, Universe Entertainment And Culture Group 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.

Universe Entertainment And Culture Group Co's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universe Entertainment And Culture Group Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Universe Entertainment And Culture Group Co's ROIC % falls into.

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Universe Entertainment And Culture Group Co ROIC % Calculation

Universe Entertainment And Culture Group Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROIC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-4.79 * ( 1 - -19.94% )	/	( (1317.426	+	899.219)	/ 2 )
=	-5.745126	/	1108.3225
=	-0.52 %

where

	Invested Capital		(A: 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	))
=	951.565	-	66.481	-	( 82.204	-	max(0, 613.641	-	181.299	+	82.204	))
=	1317.426

	Invested Capital		(A: 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	))
=	737.412	-	70.149	-	( 133.674	-	max(0, 428.861	-	196.905	+	133.674	))
=	899.219

Universe Entertainment And Culture Group Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROIC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-21.13 * ( 1 - -3.37% )	/	( (899.219	+	484.475)	/ 2 )
=	-21.842081	/	691.847
=	-3.16 %

where

	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	))
=	737.412	-	70.149	-	( 133.674	-	max(0, 428.861	-	196.905	+	133.674	))
=	899.219

	Invested Capital		(Q: Dec. 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	))
=	526.475	-	120.181	-	( 115.802	-	max(0, 294.399	-	216.218	+	115.802	))
=	484.475

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

Universe Entertainment And Culture Group Co (HKSE:01046) 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, Universe Entertainment And Culture Group Co's WACC % is 4.29%. Universe Entertainment And Culture Group Co's ROIC % is -2.94% (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.

Universe Entertainment And Culture Group Co ROIC % Related Terms

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Universe Entertainment And Culture Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universe Entertainment And Culture Group Co Ltd (HKSE:01046) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

192-200 Tai Lin Pai Road, 18th Floor, Wyler Centre Phase II, New Territories, Kwai Chung, Hong Kong, HKG

Website

http://www.uih.com.hk

Universe Entertainment And Culture Group Co Ltd is an investment holding company. Along with its subsidiaries, the company operates in the following reportable segments; Video distribution, film distribution and exhibition, licensing and sublicensing of film rights; Trading, wholesaling, and retailing of optical products and watches products; Leasing of investment properties; Securities investments; Financial printing services; and Others. Geographically, it derives key revenue from Hong Kong, and the rest from the People's Republic of China, Other Asian countries, and other regions. The company generates maximum revenue from Video distribution, film distribution and exhibition, licensing, and sublicensing of film rights segment.

Executives

Pioneer Entertainment Group Limited	2101 Beneficial owner
Lam Shiu Ming, Daneil	2201 Interest of corporation controlled by you

Universe Entertainment And Culture Group Co Headlines

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