Yield Go Holdings (HKSE:01796) ROC % : 3.51% (As of Sep. 2023)

View and export this data going back to 2018. Start your Free Trial

What is Yield Go 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 %. Yield Go Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 3.51%.

As of today (2024-06-08), Yield Go Holdings's WACC % is 3.16%. Yield Go Holdings's ROC % is -5.58% (calculated using TTM income statement data). Yield Go Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Yield Go Holdings ROC % Historical Data

The historical data trend for Yield Go 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.

Yield Go Holdings ROC % Chart

Yield Go Holdings Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

Get a 7-Day Free Trial

24.92

-2.75

-16.61

-1.64

-7.92

Yield Go Holdings Semi-Annual Data
	Mar16	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial									-0.68	-2.52	-2.42	-13.53	3.51

Yield Go Holdings ROC % Calculation

Yield Go Holdings'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 )
=	-13.156 * ( 1 - 0% )	/	( (169.339	+	162.696)	/ 2 )
=	-13.156	/	166.0175
=	-7.92 %

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	))
=	207.846	-	20.891	-	( 17.616	-	max(0, 75.957	-	206.548	+	17.616	))
=	169.339

	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	))
=	195.23	-	15.447	-	( 17.087	-	max(0, 28.101	-	193.268	+	17.087	))
=	162.696

Yield Go Holdings'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 )
=	5.148 * ( 1 - 0% )	/	( (162.696	+	130.562)	/ 2 )
=	5.148	/	146.629
=	3.51 %

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	))
=	195.23	-	15.447	-	( 17.087	-	max(0, 28.101	-	193.268	+	17.087	))
=	162.696

	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	))
=	209.096	-	41.287	-	( 37.247	-	max(0, 95.872	-	207.705	+	37.247	))
=	130.562

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

Yield Go Holdings (HKSE:01796) 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, Yield Go Holdings's WACC % is 3.16%. Yield Go Holdings's ROC % is -5.58% (calculated using TTM income statement data). Yield Go 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.

Yield Go Holdings ROC % Related Terms

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

Yield Go Holdings (HKSE:01796) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Yield Go Holdings Ltd (HKSE:01796) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 9 Hoi Shing Road, Unit 3, 32/F, Cable TV Tower, Tsuen Wan, New Territoties, Hong Kong, HKG

Website

http://www.yield-go.com

Yield Go Holdings Ltd is an investment holding company. The company through its subsidiaries is engaged in fitting out services and supply of fitting out materials. The fitting-out works of the company are conducted on new buildings and interior renovation works on existing buildings that involve upgrades, makeovers, and demolition of existing works for residential and commercial properties in Hong Kong.

Executives

Tse Shiu Hoi	2201 Interest of corporation controlled by you
Tse's Finance Limited	2106 Person having a security interest in shares
Huang Hou	2201 Interest of corporation controlled by you
Ultra Accord Limited	2106 Person having a security interest in shares
Chu Chui Ling	2106 Person having a security interest in shares
Yuan Feng Ventures Limited	2101 Beneficial owner
Chen Yidong	2201 Interest of corporation controlled by you
Hoi Lang Holdings Ltd.	2106 Person having a security interest in shares
Master Success International Investment Limited	2101 Beneficial owner
Man Hoi Yuen	2201 Interest of corporation controlled by you
Ng Yuen Chun	2202 Interest of your spouse

Yield Go Holdings (HKSE:01796) Headlines

No Headlines