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Green Economy Development (HKSE:01315) ROIC % : 2.58% (As of Sep. 2024)


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What is Green Economy Development 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 %. Green Economy Development's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 2.58%.

As of today (2025-03-15), Green Economy Development's WACC % is 10.26%. Green Economy Development's ROIC % is 10.08% (calculated using TTM income statement data). Green Economy Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Green Economy Development ROIC % Historical Data

The historical data trend for Green Economy Development'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.

Green Economy Development ROIC % Chart

Green Economy Development Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.24 1.93 6.34 -9.69 7.21

Green Economy Development Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 2.50 -23.30 -1.97 16.72 2.58

Competitive Comparison of Green Economy Development's ROIC %

For the Building Materials subindustry, Green Economy Development'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.


Green Economy Development's ROIC % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Green Economy Development's ROIC % distribution charts can be found below:

* The bar in red indicates where Green Economy Development's ROIC % falls into.



Green Economy Development ROIC % Calculation

Green Economy Development's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=39.607 * ( 1 - 18.3% )/( (426.109 + 471.826)/ 2 )
=32.358919/448.9675
=7.21 %

where

Invested Capital(A: Mar. 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))
=664.257 - 171.87 - ( 66.278 - max(0, 464.294 - 658.743+66.278))
=426.109

Invested Capital(A: Mar. 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))
=679.86 - 121.346 - ( 86.688 - max(0, 469.726 - 671.813+86.688))
=471.826

Green Economy Development's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=26.368 * ( 1 - 53.06% )/( (471.826 + 489.49)/ 2 )
=12.3771392/480.658
=2.58 %

where

Invested Capital(Q: Mar. 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))
=679.86 - 121.346 - ( 86.688 - max(0, 469.726 - 671.813+86.688))
=471.826

Invested Capital(Q: Sep. 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))
=755.384 - 146.564 - ( 119.33 - max(0, 411.722 - 748.395+119.33))
=489.49

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


Green Economy Development  (HKSE:01315) 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, Green Economy Development's WACC % is 10.26%. Green Economy Development's ROIC % is 10.08% (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.


Green Economy Development ROIC % Related Terms

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Green Economy Development Business Description

Traded in Other Exchanges
N/A
Address
60 Gloucester Road, Room 1001, 10th floor, China Huarong Tower, Wan Chai, Hong Kong, HKG
Green Economy Development Ltd, formerly Vision Fame International Holding Ltd. is principally engaged in the provision of building construction services, property maintenance services, alterations, renovation, upgrading fitting-out works services, and trading of materials. It operates through five business segments: Building construction; Alterations, renovation, upgrading and fitting-out works segment; Property maintenance segment; trading of materials segment and Transportation service . It derives maximum revenue from trading of materials segment. The geographic area of operation includes PRC and Hong Kong.
Executives
Chau Chit 2201 Interest of corporation controlled by you
Zhu Feng 2501 Other
Ensure Prestige Limited 2101 Beneficial owner
Mega Start Limited 2101 Beneficial owner
Zhu Kai 2201 Interest of corporation controlled by you
Double Energy Limited 2201 Interest of corporation controlled by you
Million Creation Holdings Limited 2101 Beneficial owner
Mega Start Limited 2101 Beneficial owner
Zhongtai Securities Company Limited 2201 Interest of corporation controlled by you
Zhong Tai Jin Rong Guo Ji You Xian Gong Si 2201 Interest of corporation controlled by you
Zhong Tai Jin Rong Tou Zi You Xian Gong Si 2106 Person having a security interest in shares

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