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China Yongda Automobiles Services Holdings (HKSE:03669) ROIC %

: -1.95% (As of Jun. 2023)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Yongda Automobiles Services Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -1.95%.

As of today (2024-04-24), China Yongda Automobiles Services Holdings's WACC % is 7.07%. China Yongda Automobiles Services Holdings's ROIC % is -3.29% (calculated using TTM income statement data). China Yongda Automobiles Services Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


China Yongda Automobiles Services Holdings ROIC % Historical Data

The historical data trend for China Yongda Automobiles Services 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.

China Yongda Automobiles Services Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.56 4.93 7.98 2.49 -3.27

China Yongda Automobiles Services Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 8.18 3.05 2.08 -1.95 -4.97

Competitive Comparison

For the Auto & Truck Dealerships subindustry, China Yongda Automobiles Services 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.


China Yongda Automobiles Services Holdings ROIC % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, China Yongda Automobiles Services Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where China Yongda Automobiles Services Holdings's ROIC % falls into.



China Yongda Automobiles Services Holdings ROIC % Calculation

China Yongda Automobiles Services Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=873.551 * ( 1 - 28.33% )/( (27538.145 + 22786.24)/ 2 )
=626.0740017/25162.1925
=2.49 %

where

Invested Capital(A: Dec. 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))
=38652.318 - 8245.558 - ( 2868.615 - max(0, 16319.089 - 20347.359+2868.615))
=27538.145

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))
=36253.843 - 10659.485 - ( 2808.118 - max(0, 16012.773 - 19173.284+2808.118))
=22786.24

China Yongda Automobiles Services Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

ROIC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=-569.832 * ( 1 - 23.04% )/( (22786.24 + 22149.718)/ 2 )
=-438.5427072/22467.979
=-1.95 %

where

Invested Capital(Q: 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))
=36253.843 - 10659.485 - ( 2808.118 - max(0, 16012.773 - 19173.284+2808.118))
=22786.24

Invested Capital(Q: Jun. 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))
=32796.111 - 8591.385 - ( 2055.008 - max(0, 13150.787 - 16061.875+2055.008))
=22149.718

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


China Yongda Automobiles Services Holdings  (HKSE:03669) 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, China Yongda Automobiles Services Holdings's WACC % is 7.07%. China Yongda Automobiles Services Holdings's ROIC % is -3.29% (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.


China Yongda Automobiles Services Holdings ROIC % Related Terms

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China Yongda Automobiles Services Holdings (HKSE:03669) Business Description

Traded in Other Exchanges
Address
The Center, 99 Queen’s Road Central, Unit 5708, 57th Floor, Central, Hong Kong, HKG
China Yongda Automobiles Services Holdings Ltd is a Chinese company involved in automobile sales service, automobile finance, and automobile rental. The company's reportable segments are as follows, 1) Passenger vehicle sales and services which includes the sale of passenger vehicles and provision of after-sales services, including repair and maintenance services, certain auxiliary passenger vehicles sales-related services and provision of other passenger vehicles-related services; and 2) Automobile operating lease services. The majority of the company's revenue is earned through the Passenger vehicle sales and services segment.

China Yongda Automobiles Services Holdings (HKSE:03669) Headlines

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