Cherish Sunshine International (HKSE:01094) ROC % : 0.73% (As of Sep. 2023)

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What is Cherish Sunshine International 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 %. Cherish Sunshine International's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 0.73%.

As of today (2024-06-09), Cherish Sunshine International's WACC % is 1.91%. Cherish Sunshine International's ROC % is -3.57% (calculated using TTM income statement data). Cherish Sunshine International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cherish Sunshine International ROC % Historical Data

The historical data trend for Cherish Sunshine International'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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Cherish Sunshine International ROC % Chart

Cherish Sunshine International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Mar22

Mar23

ROC %

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-9.40

-6.21

-2.79

-5.05

22.45

Cherish Sunshine International Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															-2.25	-3.25	-6.28	-12.90	0.73

Cherish Sunshine International ROC % Calculation

Cherish Sunshine International's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-23.274 * ( 1 - 499.71% )	/	( (334.027	+	494.698)	/ 2 )
=	93.0285054	/	414.3625
=	22.45 %

where

	Invested Capital		(A: Mar. 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	))
=	369.218	-	74.19	-	( 27.592	-	max(0, 85.97	-	46.971	+	27.592	))
=	334.027

	Invested Capital		(A: Mar. 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	))
=	593.424	-	90.248	-	( 8.478	-	max(0, 223.211	-	272.121	+	8.478	))
=	494.698

Cherish Sunshine International's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	5.128 * ( 1 - 31.69% )	/	( (494.698	+	464.371)	/ 2 )
=	3.5029368	/	479.5345
=	0.73 %

where

	Invested Capital		(Q: Mar. 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	))
=	593.424	-	90.248	-	( 8.478	-	max(0, 223.211	-	272.121	+	8.478	))
=	494.698

	Invested Capital		(Q: Sep. 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	))
=	604.756	-	134.276	-	( 6.109	-	max(0, 247.878	-	301.162	+	6.109	))
=	464.371

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

Cherish Sunshine International (HKSE:01094) 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, Cherish Sunshine International's WACC % is 1.91%. Cherish Sunshine International's ROC % is -3.57% (calculated using TTM income statement data). Cherish Sunshine International 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.

Cherish Sunshine International ROC % Related Terms

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Cherish Sunshine International (HKSE:01094) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Cherish Sunshine International Ltd (HKSE:01094) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1818–2 Wenyi West Road, Yuhang Street, Unit 109–14, Block 1, Yuhang District, Zhejiang Province, Hangzhou, CHN

Website

http://www.sunshine1094.com

Cherish Sunshine International Ltd is a provider of one-stop integrated procurement service solutions in China. Its segments are the provision of procurement services, trading business, provision of corporate IT solutions, rental income, and energy management contracting business. The majority of the revenue derives from the trading segment which engaged in the Trading of general goods.

Executives

Eastmount Global Limited	2101 Beneficial owner
Liu Luoxiu	2307 Founder of a discretionary trust who can infl
Wu Siyuan	2501 Other
Trident Trust Company (singapore) Pte Limited	2301 Trustee
Jiang Xi Yin Xing Gu Fen You Xian Gong Si	2106 Person having a security interest in shares

Cherish Sunshine International (HKSE:01094) Headlines

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