Sinic Holdings (Group) Co (HKSE:02103) ROIC % : 2.63% (As of Jun. 2021)

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What is Sinic Holdings (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 %. Sinic Holdings (Group) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2021 was 2.63%.

As of today (2024-09-25), Sinic Holdings (Group) Co's WACC % is 0.00%. Sinic Holdings (Group) Co's ROIC % is 0.00% (calculated using TTM income statement data). Sinic Holdings (Group) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sinic Holdings (Group) Co ROIC % Historical Data

The historical data trend for Sinic Holdings (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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Sinic Holdings (Group) Co ROIC % Chart

Sinic Holdings (Group) Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

ROIC %

0.98

1.35

1.22

3.22

3.45

Sinic Holdings (Group) Co Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
ROIC %	Get a 7-Day Free Trial			1.71	4.68	2.48	4.12	2.63

Competitive Comparison of Sinic Holdings (Group) Co's ROIC %

For the Real Estate - Development subindustry, Sinic Holdings (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.

Sinic Holdings (Group) Co's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sinic Holdings (Group) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Sinic Holdings (Group) Co's ROIC % falls into.

Sinic Holdings (Group) Co ROIC % Calculation

Sinic Holdings (Group) Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROIC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	6341.36 * ( 1 - 59.92% )	/	( (72595.891	+	74636.12)	/ 2 )
=	2541.617088	/	73616.0055
=	3.45 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	107072.828	-	22414.126	-	( 12062.811	-	max(0, 73730.812	-	86642.672	+	12062.811	))
=	72595.891

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	114545.837	-	26199.381	-	( 13710.336	-	max(0, 73450.714	-	90846.877	+	13710.336	))
=	74636.12

Sinic Holdings (Group) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2021 is calculated as:

	ROIC % (Q: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Jun. 2021 ))	/ count )
=	4138.624 * ( 1 - 50.01% )	/	( (74636.12	+	82885.074)	/ 2 )
=	2068.8981376	/	78760.597
=	2.63 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	114545.837	-	26199.381	-	( 13710.336	-	max(0, 73450.714	-	90846.877	+	13710.336	))
=	74636.12

	Invested Capital		(Q: Jun. 2021 )
=	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	))
=	135347.327	-	31813.744	-	( 24270.089	-	max(0, 91120.28	-	111768.789	+	24270.089	))
=	82885.074

Note: The Operating Income data used here is two times the semi-annual (Jun. 2021) data.

Sinic Holdings (Group) Co (HKSE:02103) 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, Sinic Holdings (Group) Co's WACC % is 0.00%. Sinic Holdings (Group) Co's ROIC % is 0.00% (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.

Sinic Holdings (Group) Co ROIC % Related Terms

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Sinic Holdings (Group) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Sinic Holdings (Group) Co Ltd (HKSE:02103) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

No. 988 ShenChang Road, 7th Floor, HongQiao Vanke Center T6, MinHang District, Shanghai, CHN

Website

http://www.sinicdc.com

Sinic Holdings (Group) Co Ltd is a Cayman Islands-based property developer. It is engaged in the development of residential and commercial properties. The company offers property development, property leasing, and the provision of management consulting services. It generates revenue through the sale of properties and mainly operates in Mainland China.

Executives

Zhang Yuanlin	2101 Beneficial owner
Wu Chengping	2202 Interest of your spouse
Honoured Ever Oriental Holdings Limited	2201 Interest of corporation controlled by you
Sinic Group Company Limited	2201 Interest of corporation controlled by you
Sinic Holdings Group Company Limited	2101 Beneficial owner
Tmf (cayman) Ltd.	2301 Trustee
Xin Hong Company Limited	2201 Interest of corporation controlled by you

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