Beijing Jingkelong Co (HKSE:00814) ROC % : -3.29% (As of Dec. 2023)

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What is Beijing Jingkelong Co 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 %. Beijing Jingkelong Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -3.29%.

As of today (2024-05-28), Beijing Jingkelong Co's WACC % is 0.26%. Beijing Jingkelong Co's ROC % is -22.64% (calculated using TTM income statement data). Beijing Jingkelong Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Beijing Jingkelong Co ROC % Historical Data

The historical data trend for Beijing Jingkelong Co'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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Beijing Jingkelong Co ROC % Chart

Beijing Jingkelong Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.60

1.97

0.83

5.94

-22.78

Beijing Jingkelong Co 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															3.19	1.49	0.86	9.50	-3.29

Beijing Jingkelong Co ROC % Calculation

Beijing Jingkelong Co'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 )
=	154.346 * ( 1 - 1120.99% )	/	( (7101.709	+	6736.674)	/ 2 )
=	-1575.8572254	/	6919.1915
=	-22.78 %

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	))
=	8368.595	-	1243.981	-	( 821.142	-	max(0, 5409.157	-	5432.062	+	821.142	))
=	7101.709

	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	))
=	7800.88	-	930.838	-	( 917.974	-	max(0, 5278.595	-	5411.963	+	917.974	))
=	6736.674

Beijing Jingkelong Co'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 )
=	184.436 * ( 1 - 223.07% )	/	( (7041.556	+	6736.674)	/ 2 )
=	-226.9853852	/	6889.115
=	-3.29 %

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	))
=	8168.64	-	1110.851	-	( 1332.172	-	max(0, 5425.076	-	5441.309	+	1332.172	))
=	7041.556

	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	))
=	7800.88	-	930.838	-	( 917.974	-	max(0, 5278.595	-	5411.963	+	917.974	))
=	6736.674

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

Beijing Jingkelong Co (HKSE:00814) 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, Beijing Jingkelong Co's WACC % is 0.26%. Beijing Jingkelong Co's ROC % is -22.64% (calculated using TTM income statement data). Beijing Jingkelong Co 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.

Beijing Jingkelong Co ROC % Related Terms

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Beijing Jingkelong Co (HKSE:00814) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Beijing Jingkelong Co Ltd (HKSE:00814) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

G2M:Germany

Address

XinYuan Street, Block No. 45, Chaoyang District, Beijing, CHN

Website

https://www.jkl.com.cn

Beijing Jingkelong Co Ltd is engaged in the retail and wholesale distribution of daily consumer products in the region covering Beijing City and certain parts of its periphery. The company operates in three business segments including Retailing segment which mainly engages in the distribution of food, untagged food, daily necessities, drinks and cigarettes, hardware, and household appliances; Wholesaling segment is engaged in the wholesale supply of daily consumer products, including food, untagged food, beverages, drinks, cigarettes, and daily necessities and Other segment comprises, selling plastic packing products, hotel services, and school training services. It derives the majority of its revenue from the Wholesaling segment.

Executives

China Galaxy International Asset Management (hong Kong) Co., Limited	2102 Investment manager
China Galaxy International Spc (acting For And On Behalf Of China Galaxy Value Fund I Sp)	2201 Interest of corporation controlled by you

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