San Miguel Brewery Hong Kong (HKSE:00236) ROC % : -11.41% (As of Dec. 2023)

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What is San Miguel Brewery Hong Kong ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. San Miguel Brewery Hong Kong's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -11.41%.

As of today (2024-06-08), San Miguel Brewery Hong Kong's WACC % is 6.95%. San Miguel Brewery Hong Kong's ROC % is 7.29% (calculated using TTM income statement data). San Miguel Brewery Hong Kong 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.

San Miguel Brewery Hong Kong ROC % Historical Data

The historical data trend for San Miguel Brewery Hong Kong's ROC % 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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San Miguel Brewery Hong Kong ROC % Chart

San Miguel Brewery Hong Kong Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-8.95

-2.24

-0.57

1.10

7.20

San Miguel Brewery Hong Kong Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															2.99	-5.53	7.44	14.69	-11.41

San Miguel Brewery Hong Kong ROC % Calculation

San Miguel Brewery Hong Kong's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	27.309 * ( 1 - -34.82% )	/	( (495.314	+	527.223)	/ 2 )
=	36.8179938	/	511.2685
=	7.20 %

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	))
=	719.344	-	110.024	-	( 114.006	-	max(0, 114.03	-	267.567	+	114.006	))
=	495.314

	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	))
=	807.556	-	100.354	-	( 179.979	-	max(0, 104.312	-	324.523	+	179.979	))
=	527.223

San Miguel Brewery Hong Kong's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-20.634 * ( 1 - -181.6% )	/	( (491.715	+	527.223)	/ 2 )
=	-58.105344	/	509.469
=	-11.41 %

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	))
=	757.967	-	105.584	-	( 160.668	-	max(0, 109.471	-	311.174	+	160.668	))
=	491.715

	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	))
=	807.556	-	100.354	-	( 179.979	-	max(0, 104.312	-	324.523	+	179.979	))
=	527.223

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

San Miguel Brewery Hong Kong (HKSE:00236) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, San Miguel Brewery Hong Kong's WACC % is 6.95%. San Miguel Brewery Hong Kong's ROC % is 7.29% (calculated using TTM income statement data). San Miguel Brewery Hong Kong 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.

Be Aware

Like ROE % and ROA %, ROC % 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.

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San Miguel Brewery Hong Kong (HKSE:00236) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » San Miguel Brewery Hong Kong Ltd (HKSE:00236) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Citimark Building, 28 Yuen Shun Circuit, 9th Floor, Siu Lek Yuen, Shatin, New Territories, Hong Kong, HKG

Website

http://info.sanmiguel.com.hk

San Miguel Brewery Hong Kong Ltd is engaged in the manufacturing and distribution of bottled, canned and draught beers. Its two reportable segments are 1) The Hong Kong operations comprise of the manufacture and distribution of own brewed beer products and the distribution of imported beer products in Hong Kong and overseas. 2) The Mainland China operations comprise of the manufacture and distribution of own-brewed beer products in the southern part of the People's Republic of China and overseas. It derives the majority of its revenue from Hong Kong.

Executives

San Miguel Corporation	2201 Interest of corporation controlled by you
San Miguel Food And Beverage, Inc.	2201 Interest of corporation controlled by you
Top Frontier Investment Holdings, Inc.	2201 Interest of corporation controlled by you
Zobel Iñigo	2201 Interest of corporation controlled by you

San Miguel Brewery Hong Kong (HKSE:00236) Headlines

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