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Hong Kong Ferry (Holdings) Co (HKSE:00050) ROIC % : 2.28% (As of Dec. 2023)


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What is Hong Kong Ferry (Holdings) Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hong Kong Ferry (Holdings) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.28%.

As of today (2024-05-14), Hong Kong Ferry (Holdings) Co's WACC % is 6.56%. Hong Kong Ferry (Holdings) Co's ROIC % is 2.11% (calculated using TTM income statement data). Hong Kong Ferry (Holdings) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Hong Kong Ferry (Holdings) Co ROIC % Historical Data

The historical data trend for Hong Kong Ferry (Holdings) Co's ROIC % 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.

Hong Kong Ferry (Holdings) Co ROIC % Chart

Hong Kong Ferry (Holdings) Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 0.96 1.61 1.94 2.10

Hong Kong Ferry (Holdings) Co Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.14 2.57 1.18 1.96 2.28

Competitive Comparison of Hong Kong Ferry (Holdings) Co's ROIC %

For the Real Estate - Diversified subindustry, Hong Kong Ferry (Holdings) Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hong Kong Ferry (Holdings) Co's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Hong Kong Ferry (Holdings) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Hong Kong Ferry (Holdings) Co's ROIC % falls into.



Hong Kong Ferry (Holdings) Co ROIC % Calculation

Hong Kong Ferry (Holdings) Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=123.479 * ( 1 - 10.05% )/( (5340.063 + 5231.146)/ 2 )
=111.0693605/5285.6045
=2.10 %

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))
=7534.621 - 221.832 - ( 1972.726 - max(0, 230.933 - 3907.115+1972.726))
=5340.063

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))
=7289.271 - 232.691 - ( 1825.434 - max(0, 240.726 - 3792.221+1825.434))
=5231.146

Hong Kong Ferry (Holdings) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=128.164 * ( 1 - 7.23% )/( (5198.645 + 5231.146)/ 2 )
=118.8977428/5214.8955
=2.28 %

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))
=7295.754 - 293.807 - ( 1803.302 - max(0, 301.068 - 3757.343+1803.302))
=5198.645

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))
=7289.271 - 232.691 - ( 1825.434 - max(0, 240.726 - 3792.221+1825.434))
=5231.146

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

* 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.


Hong Kong Ferry (Holdings) Co  (HKSE:00050) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Hong Kong Ferry (Holdings) Co's WACC % is 6.56%. Hong Kong Ferry (Holdings) Co's ROIC % is 2.11% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Hong Kong Ferry (Holdings) Co ROIC % Related Terms

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Hong Kong Ferry (Holdings) Co (HKSE:00050) Business Description

Traded in Other Exchanges
N/A
Address
98 Tam Kon Shan Road, TYTL 102, Ngau Kok Wan, North Tsing Yi, New Territories, Hong Kong, HKG, TYTL 102
Hong Kong Ferry (Holdings) Co Ltd is an investment holding company. It operates through four segments comprising Property development including the development and sale of properties; Property investment including rental income from the leasing of properties; Ferry, shipyard and related operations including income from the operation of dangerous goods vehicular ferry service and ship repairs and maintenance services and sales of goods on cruise vessels; and Securities investment segment which includes dividend, interest and other income from debt and equity securities investments. It derives a majority of the revenue from the Property investment segment. All of the group's revenue and profit from operations were derived from activities in Hong Kong.

Hong Kong Ferry (Holdings) Co (HKSE:00050) Headlines

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