Hao Tian International Construction Investment Group (HKSE:01341) ROC % : -0.08% (As of Sep. 2023)

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What is Hao Tian International Construction Investment Group 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 %. Hao Tian International Construction Investment Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -0.08%.

As of today (2024-06-05), Hao Tian International Construction Investment Group's WACC % is 3.51%. Hao Tian International Construction Investment Group's ROC % is 0.40% (calculated using TTM income statement data). Hao Tian International Construction Investment Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hao Tian International Construction Investment Group ROC % Historical Data

The historical data trend for Hao Tian International Construction Investment Group'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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Hao Tian International Construction Investment Group ROC % Chart

Hao Tian International Construction Investment Group Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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-4.25

-0.67

1.56

0.46

1.02

Hao Tian International Construction Investment Group Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial													-0.42	1.30	1.37	0.64	-0.08

Hao Tian International Construction Investment Group ROC % Calculation

Hao Tian International Construction Investment Group'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 )
=	27 * ( 1 - 5.26% )	/	( (2434	+	2606)	/ 2 )
=	25.5798	/	2520
=	1.02 %

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	))
=	2931	-	167	-	( 330	-	max(0, 597	-	1414	+	330	))
=	2434

	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	))
=	3489	-	600	-	( 283	-	max(0, 968	-	1731	+	283	))
=	2606

Hao Tian International Construction Investment Group'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 )
=	-2 * ( 1 - -3.66% )	/	( (2606	+	2598)	/ 2 )
=	-2.0732	/	2602
=	-0.08 %

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	))
=	3489	-	600	-	( 283	-	max(0, 968	-	1731	+	283	))
=	2606

	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	))
=	2780	-	48	-	( 134	-	max(0, 425	-	1049	+	134	))
=	2598

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

Hao Tian International Construction Investment Group (HKSE:01341) 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, Hao Tian International Construction Investment Group's WACC % is 3.51%. Hao Tian International Construction Investment Group's ROC % is 0.40% (calculated using TTM income statement data). Hao Tian International Construction Investment Group 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.

Hao Tian International Construction Investment Group ROC % Related Terms

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Hao Tian International Construction Investment Group (HKSE:01341) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Hao Tian International Construction Investment Group Ltd (HKSE:01341) » Definitions » ROC %

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HAOTF:USA

Address

6-8 Harbour Road, Rooms 2510-2518, 25th Floor, Shui On Centre, Wanchai, Hong Kong, HKG

Website

http://www.haotianint.com.hk

Hao Tian International Construction Investment Group Ltd is an investment holding company. The company's operating segment includes the Rental and sale of construction machinery and spare parts business which generates majority revenue to the business; Provision of repair and maintenance and transportation service business; Money lending business; Provision of asset management, securities brokerage, commodities, futures, and other financial services business and Property development business. The company operates in Hong Kong, The People's Republic of China, Macau, and Cambodia geographically.

Executives

Aceso Life Science Group Limited	2201 Interest of corporation controlled by you
Asia Link Capital Investment Holdings Limited	2201 Interest of corporation controlled by you
Win Team Investments Limited	2201 Interest of corporation controlled by you
Hao Tian Management (china) Limited	2101 Beneficial owner
Li Shao Yu	2201 Interest of corporation controlled by you
Yi Tai Gu Fen Xiang Gang You Xian Gong Si	2101 Beneficial owner
Nei Meng Gu Yi Tai Mei Tan Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Lin Yuan	2101 Beneficial owner
Hao Tian Management (hong Kong) Limited	2101 Beneficial owner
Central Huijin Investment Ltd.	2106 Person having a security interest in shares
China Construction Bank Corporation	2106 Person having a security interest in shares
Su Junhao	2101 Beneficial owner
Soaring Wealth Ventures Limited	2101 Beneficial owner

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