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Fantasia Holdings Group Co (STU:FT7) ROIC % : 5.70% (As of Dec. 2023)


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What is Fantasia 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 %. Fantasia Holdings Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 5.70%.

As of today (2024-09-22), Fantasia Holdings Group Co's WACC % is 4.71%. Fantasia Holdings Group Co's ROIC % is 2.21% (calculated using TTM income statement data). Fantasia Holdings Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Fantasia Holdings Group Co ROIC % Historical Data

The historical data trend for Fantasia 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.

* Premium members only.

Fantasia Holdings Group Co ROIC % Chart

Fantasia Holdings Group Co 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 2.56 2.32 0.17 0.70 2.49

Fantasia Holdings Group Co 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 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 0.01 1.44 0.26 5.70 -0.04

Competitive Comparison of Fantasia Holdings Group Co's ROIC %

For the Real Estate - Development subindustry, Fantasia 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.


Fantasia Holdings Group Co's ROIC % Distribution in the Real Estate Industry

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

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



Fantasia Holdings Group Co ROIC % Calculation

Fantasia Holdings Group Co'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 )
=215.81 * ( 1 - -26.08% )/( (12818.257 + 8994.555)/ 2 )
=272.093248/10906.406
=2.49 %

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))
=12867.596 - 1874.381 - ( 157.669 - max(0, 11457.485 - 9632.443+157.669))
=12818.257

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))
=9981.419 - 1845.824 - ( 162.431 - max(0, 8529.164 - 7670.204+162.431))
=8994.555

Fantasia Holdings Group Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=401.06 * ( 1 - -49.42% )/( (12042.16 + 8994.555)/ 2 )
=599.263852/10518.3575
=5.70 %

where

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))
=11896.038 - 1601.215 - ( 152.508 - max(0, 10618.506 - 8871.169+152.508))
=12042.16

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))
=9981.419 - 1845.824 - ( 162.431 - max(0, 8529.164 - 7670.204+162.431))
=8994.555

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


Fantasia Holdings Group Co  (STU:FT7) 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, Fantasia Holdings Group Co's WACC % is 4.71%. Fantasia Holdings Group Co's ROIC % is 2.21% (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.


Fantasia Holdings Group Co ROIC % Related Terms

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Fantasia Holdings Group Co Business Description

Comparable Companies
Traded in Other Exchanges
Address
Shihua Road and Zijing Road, Block A, Funian Plaza, Interchange in Futian Duty-free Zone, Guangdong Province, Shenzhen, CHN, 518048
Fantasia Holdings Group Co Ltd is a Chinese financial holding group which mainly operates in developing, selling and leasing of commercial and residential properties, and provides services related to property operation, hotel management and travel agency. The company derives the majority of its revenue via property sales. Their property operation services are also a key contributor to companywide sales. The contracted sales contribution of the Group's real estate business mainly comes from a number of first- and second-tier cities in China. Fantasia is positioned as a large community service operator that seeks to deliver community platforms including residential, commercial, business and elderly service communities.

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