ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sing Lee Software (Group)'s annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 292.84%.
As of today (2024-06-23), Sing Lee Software (Group)'s WACC % is 4.24%. Sing Lee Software (Group)'s ROIC % is -16.29% (calculated using TTM income statement data).
Sing Lee Software (Group) earns returns that do not match up to its cost of capital. It will destroy value as it grows.
* 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 Sing Lee Software (Group)'s ROIC %
For the Information Technology Services subindustry, Sing Lee Software (Group)'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.
Sing Lee Software (Group)'s ROIC % Distribution in the Software Industry
For the Software industry and Technology sector, Sing Lee Software (Group)'s ROIC % distribution charts can be found below:
* The bar in red indicates where Sing Lee Software (Group)'s ROIC % falls into.
Sing Lee Software (Group) ROIC % Calculation
Sing Lee Software (Group)'s annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Dec. 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.
Sing Lee Software (Group) (HKSE:08076) 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, Sing Lee Software (Group)'s WACC % is 4.24%. Sing Lee Software (Group)'s ROIC % is -16.29% (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.
Sing Lee Software (Group) ROIC % Related Terms
Thank you for viewing the detailed overview of Sing Lee Software (Group)'s ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sing Lee Software (Group) (HKSE:08076) Business Description
Sing Lee Software (Group) Ltd is an investment holding company, which engages in the development and sale of software products. The firm develops and sells information and network technologies and services to the financial and educational industries. It also provides technical support services. It operates its business through the following segments: Sales of Software Products; Sales of Related Hardware Products; and Provision of Technical Support Services. The entity generates most of its revenue from the Provision of Technical Support Services segment. Geographically, it derives the majority of revenue from China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:08076 has been successfully added to your 