Ho Chi Minh City Securities (STC:HCM) ROIC % : 0.15% (As of Mar. 2024)

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What is Ho Chi Minh City Securities 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 %. Ho Chi Minh City Securities's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 0.15%.

As of today (2024-06-03), Ho Chi Minh City Securities's WACC % is 6.98%. Ho Chi Minh City Securities's ROIC % is -1.07% (calculated using TTM income statement data). Ho Chi Minh City Securities earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ho Chi Minh City Securities ROIC % Historical Data

The historical data trend for Ho Chi Minh City Securities'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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Ho Chi Minh City Securities ROIC % Chart

Ho Chi Minh City Securities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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0.44

1.28

1.64

-1.39

-1.68

Ho Chi Minh City Securities Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															-2.78	-1.31	-0.76	-2.38	0.15

Competitive Comparison of Ho Chi Minh City Securities's ROIC %

For the Capital Markets subindustry, Ho Chi Minh City Securities'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.

Ho Chi Minh City Securities's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Ho Chi Minh City Securities's ROIC % distribution charts can be found below:

* The bar in red indicates where Ho Chi Minh City Securities's ROIC % falls into.

Ho Chi Minh City Securities ROIC % Calculation

Ho Chi Minh City Securities'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 )
=	-224443.111 * ( 1 - 19.93% )	/	( (8279336.173	+	13073821.781)	/ 2 )
=	-179711.5989777	/	10676578.977
=	-1.68 %

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	))
=	15446955.045	-	434163.59	-	( 6733455.282	-	max(0, 7555122.709	-	15262466.983	+	6733455.282	))
=	8279336.173

	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	))
=	17910675.073	-	273330.615	-	( 4563522.677	-	max(0, 9598589.845	-	17728214.114	+	4563522.677	))
=	13073821.781

Ho Chi Minh City Securities's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	25494.424 * ( 1 - 19.93% )	/	( (13073821.781	+	13275942.302)	/ 2 )
=	20413.3852968	/	13174882.0415
=	0.15 %

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	))
=	17910675.073	-	273330.615	-	( 4563522.677	-	max(0, 9598589.845	-	17728214.114	+	4563522.677	))
=	13073821.781

	Invested Capital		(Q: Mar. 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	))
=	20408871.841	-	2057245.019	-	( 5075684.52	-	max(0, 11819931.772	-	20220347.164	+	5075684.52	))
=	13275942.302

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Ho Chi Minh City Securities (STC:HCM) 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, Ho Chi Minh City Securities's WACC % is 6.98%. Ho Chi Minh City Securities's ROIC % is -1.07% (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.

Ho Chi Minh City Securities ROIC % Related Terms

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Ho Chi Minh City Securities (STC:HCM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Ho Chi Minh City Securities Corp (STC:HCM) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6 Le Lai, Ben Thanh Ward, Level 5&6, AB Tower, 7, District 1, Ho Chi Minh, VNM

Website

http://www.hsc.com.vn

Ho Chi Minh City Securities Corporation is a Vietnam-based securities brokerage and equities firm. It offers a full suite of services and financial products to private and institutional clients. The company provides brokerage and other supporting services including securities trading, underwriting for share issues, custodian services, finance and investment advisory services, investor capital support, portfolio management, pledge of securities, organizing investment and trading seminar, and margin trading services.