Overseas Chinese Town (Asia) Holdings (HKSE:03366) ROIC % : -10.49% (As of Jun. 2024)

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What is Overseas Chinese Town (Asia) 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 %. Overseas Chinese Town (Asia) Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -10.49%.

As of today (2024-12-12), Overseas Chinese Town (Asia) Holdings's WACC % is 4.54%. Overseas Chinese Town (Asia) Holdings's ROIC % is -0.48% (calculated using TTM income statement data). Overseas Chinese Town (Asia) Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Overseas Chinese Town (Asia) Holdings ROIC % Historical Data

The historical data trend for Overseas Chinese Town (Asia) 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.

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Overseas Chinese Town (Asia) Holdings ROIC % Chart

Overseas Chinese Town (Asia) Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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0.52

0.20

-0.25

-0.21

-0.84

Overseas Chinese Town (Asia) Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial															-1.25	1.09	-0.56	-1.05	-10.49

Competitive Comparison of Overseas Chinese Town (Asia) Holdings's ROIC %

For the Real Estate - Development subindustry, Overseas Chinese Town (Asia) 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.

Overseas Chinese Town (Asia) Holdings's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Overseas Chinese Town (Asia) Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Overseas Chinese Town (Asia) Holdings's ROIC % falls into.

Overseas Chinese Town (Asia) Holdings ROIC % Calculation

Overseas Chinese Town (Asia) Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-153.894 * ( 1 - -1.48% )	/	( (20127.16	+	16931.755)	/ 2 )
=	-156.1716312	/	18529.4575
=	-0.84 %

where

	Invested Capital		(A: Dec. 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	))
=	25434.338	-	3168.514	-	( 2138.664	-	max(0, 11588.992	-	18679.861	+	2138.664	))
=	20127.16

	Invested Capital		(A: Dec. 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	))
=	25082.105	-	5462.569	-	( 2687.781	-	max(0, 13000.066	-	20529.084	+	2687.781	))
=	16931.755

Overseas Chinese Town (Asia) Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	90.876 * ( 1 - 2034.89% )	/	( (16931.755	+	16591.245)	/ 2 )
=	-1758.3506364	/	16761.5
=	-10.49 %

where

	Invested Capital		(Q: Dec. 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	))
=	25082.105	-	5462.569	-	( 2687.781	-	max(0, 13000.066	-	20529.084	+	2687.781	))
=	16931.755

	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	))
=	21388.822	-	3222.435	-	( 1575.142	-	max(0, 9544.607	-	17062.492	+	1575.142	))
=	16591.245

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

Overseas Chinese Town (Asia) Holdings (HKSE:03366) 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, Overseas Chinese Town (Asia) Holdings's WACC % is 4.54%. Overseas Chinese Town (Asia) Holdings's ROIC % is -0.48% (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.

Overseas Chinese Town (Asia) Holdings ROIC % Related Terms

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Overseas Chinese Town (Asia) Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Overseas Chinese Town (Asia) Holdings Ltd (HKSE:03366) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

1 Garden Road, 59th Floor, Bank of China Tower, Hong Kong, HKG

Website

http://www.oct-asia.com

Overseas Chinese Town (Asia) Holdings Ltd is an investment holding company. It operates its business through three segments. The Comprehensive Development Business segment which drives the majority of revenue is engaged in the development and operation of the tourism theme park, the development, and sales of residential properties, and the development and management of properties; The Equity investment and fund business segment engages in the investment in new urbanization industrial ecospheres, such as domestic and overseas direct investments, industrial funds, and education. The Finance lease business segment engages in the finance lease business. It generates the majority of its revenue from Mainland China.

Executives

Pacific Climax Limited	2101 Beneficial owner
Shen Zhen Hua Qiao Cheng Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Hua Qiao Cheng Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Xiang Gang Hua Qiao Cheng You Xian Gong Si	2201 Interest of corporation controlled by you

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