Bonjour Holdings (HKSE:00653) ROC % : -6.91% (As of Dec. 2023)

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What is Bonjour 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 %. Bonjour Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -6.91%.

As of today (2024-05-31), Bonjour Holdings's WACC % is 6.92%. Bonjour Holdings's ROC % is -11.61% (calculated using TTM income statement data). Bonjour Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bonjour Holdings ROC % Historical Data

The historical data trend for Bonjour 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.

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Bonjour Holdings ROC % Chart

Bonjour Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-6.50

-17.59

-24.86

-21.66

-11.31

Bonjour Holdings 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															-20.42	-19.63	-20.60	-16.32	-6.91

Bonjour Holdings ROC % Calculation

Bonjour 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 )
=	-63.439 * ( 1 - 1.17% )	/	( (588.892	+	520.149)	/ 2 )
=	-62.6967637	/	554.5205
=	-11.31 %

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	))
=	505.407	-	86.255	-	( 41.95	-	max(0, 264.109	-	94.369	+	41.95	))
=	588.892

	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	))
=	504.108	-	36.953	-	( 16.109	-	max(0, 147.369	-	94.375	+	16.109	))
=	520.149

Bonjour 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 )
=	-36.124 * ( 1 - 1.34% )	/	( (510.694	+	520.149)	/ 2 )
=	-35.6399384	/	515.4215
=	-6.91 %

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	))
=	461.324	-	66.815	-	( 18.42	-	max(0, 185.181	-	68.996	+	18.42	))
=	510.694

	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	))
=	504.108	-	36.953	-	( 16.109	-	max(0, 147.369	-	94.375	+	16.109	))
=	520.149

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

Bonjour Holdings (HKSE:00653) 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, Bonjour Holdings's WACC % is 6.92%. Bonjour Holdings's ROC % is -11.61% (calculated using TTM income statement data). Bonjour 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.

Bonjour Holdings ROC % Related Terms

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Bonjour Holdings (HKSE:00653) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bonjour Holdings Ltd (HKSE:00653) » Definitions » ROC %

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BJURF:USA

Address

No. 36-50 Wang Wo Tsai Street, 12th Floor, Bonjour Tower, Tsuen Wan, Hong Kong, HKG

Website

https://www.bonjourhk.com

Bonjour Holdings Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the retail and wholesale of beauty and healthcare products in Hong Kong, Macau and Mainland China. The group sells many featured products and provides products of distribution, international brands, and in-house brands. The operating segment of the company is Wholesaling and retailing of beauty and healthcare products and Wholesaling of technology products. The firm generates the majority of its revenue from operations in Hong Kong.

Executives

Chen Jianwen	2101 Beneficial owner
Far East Consortium International Limited
Far East Organization (international) Limited
Sumptuous Assets Limited
Chiu David
Chiu Ng Nancy
Jl Investments Capital Limited	2106 Person having a security interest in shares
Lau Chi Yuen Joseph	2201 Interest of corporation controlled by you

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