GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Quali-Smart Holdings Ltd (HKSE:01348) » Definitions » ROIC %

Quali-Smart Holdings (HKSE:01348) ROIC % : -12.26% (As of Sep. 2023)


View and export this data going back to 2013. Start your Free Trial

What is Quali-Smart 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 %. Quali-Smart Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -12.26%.

As of today (2024-05-25), Quali-Smart Holdings's WACC % is 10.77%. Quali-Smart Holdings's ROIC % is -13.49% (calculated using TTM income statement data). Quali-Smart Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Quali-Smart Holdings ROIC % Historical Data

The historical data trend for Quali-Smart 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.

Quali-Smart Holdings ROIC % Chart

Quali-Smart Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.34 -5.95 -4.72 -13.69 -12.44

Quali-Smart Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 -6.94 -15.46 -10.49 -15.23 -12.26

Competitive Comparison of Quali-Smart Holdings's ROIC %

For the Leisure subindustry, Quali-Smart 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.


Quali-Smart Holdings's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Quali-Smart Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Quali-Smart Holdings's ROIC % falls into.



Quali-Smart Holdings ROIC % Calculation

Quali-Smart Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROIC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=-23.275 * ( 1 - -0.09% )/( (247.333 + 127.164)/ 2 )
=-23.2959475/187.2485
=-12.44 %

where

Invested Capital(A: Mar. 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))
=381.507 - 104.791 - ( 29.383 - max(0, 151.081 - 283.459+29.383))
=247.333

Quali-Smart Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-14.76 * ( 1 - 0.1% )/( (127.164 + 113.338)/ 2 )
=-14.74524/120.251
=-12.26 %

where

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


Quali-Smart Holdings  (HKSE:01348) 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, Quali-Smart Holdings's WACC % is 10.77%. Quali-Smart Holdings's ROIC % is -13.49% (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.


Quali-Smart Holdings ROIC % Related Terms

Thank you for viewing the detailed overview of Quali-Smart Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Quali-Smart Holdings (HKSE:01348) Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Hoi Shing Road, Tsuen Wan, Workshop C, 19th Floor, TML Tower, New Territories, Hong Kong, HKG
Quali-Smart Holdings Ltd is an investment holding company. The company's operating segment includes Manufacturing and sales of toys and Financial Services. It generates maximum revenue from the Manufacturing and sales of toys segment. The Financial Services segment includes securities brokerage, underwriting, securities margin financing, investment advisory, corporate finance, and asset management services. Geographically, it derives a majority of its revenue from North America which includes the United States of America and Canada, and also has a presence in the United Kingdom; France; PRC, and Taiwan; Central America, Caribbean, and Mexico; Australia, New Zealand, and Pacific Islands and other countries.
Executives
Benefit Global Limited 2101 Beneficial owner
Blackpine Private Equity Partners G.p. Limited 2201 Interest of corporation controlled by you
Clearfield Global Limited 2201 Interest of corporation controlled by you
Chu Lawrence Sheng Yu 2201 Interest of corporation controlled by you
Li Man Yee Stella 2101 Beneficial owner
Lau Ho Ming Peter 2101 Beneficial owner
Smart Investor Holdings Limited 2101 Beneficial owner
Zhongtai Securities Company Limited
Zhong Tai Jin Rong Guo Ji You Xian Gong Si 2101 Beneficial owner
Shan Dong Gang Tie Ji Tuan You Xian Gong Si
Lai Wu Gang Tie Ji Tuan You Xian Gong Si

Quali-Smart Holdings (HKSE:01348) Headlines

No Headlines