ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Coolpoint Innonism Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -4.16%.
As of today (2024-05-27), Coolpoint Innonism Holding's WACC % is 3.05%. Coolpoint Innonism Holding's ROIC % is 6.50% (calculated using TTM income statement data).
Coolpoint Innonism Holding 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.
* 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 Coolpoint Innonism Holding's ROIC %
For the Consulting Services subindustry, Coolpoint Innonism Holding'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.
Coolpoint Innonism Holding's ROIC % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Coolpoint Innonism Holding's ROIC % distribution charts can be found below:
* The bar in red indicates where Coolpoint Innonism Holding's ROIC % falls into.
Coolpoint Innonism Holding ROIC % Calculation
Coolpoint Innonism Holding's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (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.
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, Coolpoint Innonism Holding's WACC % is 3.05%. Coolpoint Innonism Holding's ROIC % is 6.50% (calculated using TTM income statement data).
Coolpoint Innonism Holding 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.
Coolpoint Innonism Holding 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.
Coolpoint Innonism Holding ROIC % Related Terms
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Coolpoint Innonism Holding (HKSE:08040) Business Description
Coolpoint Innonism Holding Ltd is principally engaged in the provision of fitting-out, Nano-AM application services and renovation services in Hong Kong. The fitting-out and renovation services of the Group mainly include the provision of interior fitting-out and renovation services for different types of premises in the private sector, including residential apartments and residential dwellings, show flats, clubhouses, sale offices, public areas in residential and commercial buildings, office, shopping malls and shops in Hong Kong. Nano-Am application services include refers to the provision and application of nanophotocatalytic antifouling materials (the "Nano-AM") on various types of repairs and maintenance work for yachts.
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