ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Jinmao Holdings Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 1.16%.
As of today (2024-06-04), China Jinmao Holdings Group's WACC % is 3.13%. China Jinmao Holdings Group's ROIC % is 1.65% (calculated using TTM income statement data).
China Jinmao Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Jinmao Holdings Group ROIC % Historical 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.
Competitive Comparison of China Jinmao Holdings Group's ROIC %
For the Real Estate - Development subindustry, China Jinmao Holdings Group'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.
China Jinmao Holdings Group's ROIC % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, China Jinmao Holdings Group's ROIC % distribution charts can be found below:
* The bar in red indicates where China Jinmao Holdings Group's ROIC % falls into.
China Jinmao Holdings Group ROIC % Calculation
China Jinmao Holdings Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
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.
China Jinmao Holdings Group (HKSE:00817) 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, China Jinmao Holdings Group's WACC % is 3.13%. China Jinmao Holdings Group's ROIC % is 1.65% (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.
China Jinmao Holdings Group ROIC % Related Terms
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China Jinmao Holdings Group (HKSE:00817) Business Description
China Jinmao, formerly known as Franshion Properties, is a mid-cap real estate developer in China, and listed on the Hong Kong stock exchange in 2007. As the real estate arm of Sinochem, a leading government-controlled chemical-producing conglomerate, China Jinmao focuses on the development of high-end residential projects in higher-tier cities of China with premium pricing. It also engages in a unique city operation model, in which it has opportunities to participate in large-scale primary and secondary land development through specific agreements with local government. Under the mixed ownership reform initiative, China Jinmao brought in Ping An as a long-term financial investor and as the second largest shareholder.
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