ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Minsheng Education Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 3.35%.
As of today (2025-04-01), Minsheng Education Group Co's WACC % is 1.48%. Minsheng Education Group Co's ROIC % is 10.95% (calculated using TTM income statement data).
Minsheng Education Group Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Minsheng Education Group Co 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 Minsheng Education Group Co's ROIC %
For the Education & Training Services subindustry, Minsheng Education 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.
Minsheng Education Group Co's ROIC % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Minsheng Education Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Minsheng Education Group Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Minsheng Education Group Co (HKSE:01569) 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, Minsheng Education Group Co's WACC % is 1.48%. Minsheng Education Group Co's ROIC % is 10.95% (calculated using TTM income statement data).
Minsheng Education Group Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Minsheng Education Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Minsheng Education Group Co ROIC % Related Terms
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Minsheng Education Group Co Ltd is an investment holding company that provides educational services in China through its subsidiary. The company operates several schools in China, including the Chongqing College of Humanities, Science, and Technology, Pass College of Chongqing Technology and Business University, Chongqing Vocational College of Applied Technology, and Inner Mongolia Fengzhou Vocational College (Qingcheng Branch). Additionally, the company has invested in Beacon International College in Singapore and Hong Kong Nang Yan College of Higher Education in Hong Kong. The company is organized into two business units based on their services: on-campus education and online education, which are the two reportable operating segments.
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