China Healthwise Holdings (HKSE:00348) ROC % : -12.37% (As of Dec. 2023)

View and export this data going back to 1997. Start your Free Trial

What is China Healthwise Holdings 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 %. China Healthwise Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -12.37%.

As of today (2024-06-07), China Healthwise Holdings's WACC % is 8.00%. China Healthwise Holdings's ROC % is -3.45% (calculated using TTM income statement data). China Healthwise Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Healthwise Holdings ROC % Historical Data

The historical data trend for China Healthwise Holdings'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.

* Premium members only.

China Healthwise Holdings ROC % Chart

China Healthwise Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-1.14

0.70

11.65

-6.58

-3.56

China Healthwise Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															0.44	-5.43	-7.84	4.49	-12.37

China Healthwise Holdings ROC % Calculation

China Healthwise Holdings'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 )
=	-5.109 * ( 1 - -1.89% )	/	( (175.899	+	116.766)	/ 2 )
=	-5.2055601	/	146.3325
=	-3.56 %

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	))
=	287.659	-	38.74	-	( 73.02	-	max(0, 74.756	-	275.017	+	73.02	))
=	175.899

	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	))
=	149.67	-	36.202	-	( 54.282	-	max(0, 142.953	-	139.655	+	54.282	))
=	116.766

China Healthwise Holdings'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 )
=	-17.15 * ( 1 - 0.1% )	/	( (160.172	+	116.766)	/ 2 )
=	-17.13285	/	138.469
=	-12.37 %

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	))
=	233.941	-	14.98	-	( 58.789	-	max(0, 48.715	-	221.245	+	58.789	))
=	160.172

	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	))
=	149.67	-	36.202	-	( 54.282	-	max(0, 142.953	-	139.655	+	54.282	))
=	116.766

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

China Healthwise Holdings (HKSE:00348) 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, China Healthwise Holdings's WACC % is 8.00%. China Healthwise Holdings's ROC % is -3.45% (calculated using TTM income statement data). China Healthwise Holdings 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 %, 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.

China Healthwise Holdings ROC % Related Terms

Thank you for viewing the detailed overview of China Healthwise Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

China Healthwise Holdings (HKSE:00348) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » China Healthwise Holdings Ltd (HKSE:00348) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

168-200 Connaught Road Central, Unit 1209, Shun Tak Centre, West Tower, Hong Kong, HKG

Website

http://www.healthwisehk.com/en

China Healthwise Holdings Ltd is an investment holding company. It operates in three segments: Chinese health products, Money lending business, and investment in financial instruments. The majority of its revenue comes from trading in Chinese health products, which include pharmaceutical products, ginseng, and dried seafood products. The company's geographical segments are Hong Kong and the PRC, of which key revenue is derived from Hong Kong.

Executives

Eternity Investment Limited	2201 Interest of corporation controlled by you
Heng Tai Consumables Group Limited	2201 Interest of corporation controlled by you
Heng Tai Finance Limited	2101 Beneficial owner
Lei Hong Wai	2101 Beneficial owner

China Healthwise Holdings (HKSE:00348) Headlines

No Headlines