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

View and export this data going back to 2015. Start your Free Trial

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

As of today (2024-05-16), Hao Tian International Construction Investment Group's WACC % is 3.50%. Hao Tian International Construction Investment Group's ROIC % 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 ROIC % Historical Data

The historical data trend for Hao Tian International Construction Investment Group'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.

Hao Tian International Construction Investment Group ROIC % Chart

Hao Tian International Construction Investment Group Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

Get a 7-Day Free Trial

-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
ROIC %	Get a 7-Day Free Trial													-0.42	1.30	1.37	0.64	-0.08

Competitive Comparison of Hao Tian International Construction Investment Group's ROIC %

For the Rental & Leasing Services subindustry, Hao Tian International Construction Investment 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.

Hao Tian International Construction Investment Group's ROIC % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Hao Tian International Construction Investment Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Hao Tian International Construction Investment Group's ROIC % falls into.

Hao Tian International Construction Investment Group ROIC % Calculation

Hao Tian International Construction Investment Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (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 Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (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) 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, Hao Tian International Construction Investment Group's WACC % is 3.50%. Hao Tian International Construction Investment Group's ROIC % is 0.40% (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.

Hao Tian International Construction Investment Group ROIC % Related Terms

Thank you for viewing the detailed overview of Hao Tian International Construction Investment Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

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 » ROIC %

Comparable Companies

Traded in Other Exchanges

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.

Hao Tian International Construction Investment Group (HKSE:01341) Headlines

No Headlines