Dragon King Group Holdings (HKSE:08493) ROC % : 0.00% (As of Jun. 2024)

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What is Dragon King Group 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 %. Dragon King Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2024-10-09), Dragon King Group Holdings's WACC % is 4.02%. Dragon King Group Holdings's ROC % is 6.03% (calculated using TTM income statement data). Dragon King Group Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Dragon King Group Holdings ROC % Historical Data

The historical data trend for Dragon King Group 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.

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Dragon King Group Holdings ROC % Chart

Dragon King Group Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-14.56

-33.43

-25.69

-19.61

5.75

Dragon King Group Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															24.87	-0.79	5.81	-4.62	-

Dragon King Group Holdings ROC % Calculation

Dragon King Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	6.509 * ( 1 - 10.28% )	/	( (102.731	+	100.492)	/ 2 )
=	5.8398748	/	101.6115
=	5.75 %

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	))
=	55.377	-	88.64	-	( 4.881	-	max(0, 157.642	-	21.648	+	4.881	))
=	102.731

	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	))
=	44.785	-	74.226	-	( 1.014	-	max(0, 144.687	-	14.754	+	1.014	))
=	100.492

Dragon King Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (100.492	+	91.105)	/ 2 )
=	0	/	95.7985
=	0.00 %

where

	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	))
=	44.785	-	74.226	-	( 1.014	-	max(0, 144.687	-	14.754	+	1.014	))
=	100.492

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	47.883	-	81.377	-	( 8.094	-	max(0, 143.035	-	18.436	+	8.094	))
=	91.105

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

Dragon King Group Holdings (HKSE:08493) 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, Dragon King Group Holdings's WACC % is 4.02%. Dragon King Group Holdings's ROC % is 6.03% (calculated using TTM income statement data). Dragon King Group Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Dragon King Group Holdings ROC % Related Terms

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Dragon King Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dragon King Group Holdings Ltd (HKSE:08493) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

251 Queen’s Road Central, Tern Centre Two, 16th Floor, Hong Kong, HKG

Website

https://www.dragonkinggroup.com

Dragon King Group Holdings Ltd is an investment holding company. Through its subsidiaries, the company is engaged in the operation and management of restaurants. The group is a Cantonese full-service restaurant group operating Cantonese cuisine restaurants. The company operates in China, Hong Kong, and Macau, from which it derives maximum revenue from Hong Kong. The group's restaurants operate under five self-owned brands, namely Dragon King, Dragon Seal, Dragon Gown, Imperial Seal, and Dragon Feast.

Executives

Ubs Group Ag	2201 Interest of corporation controlled by you
Chan Yuen Lung Alfred	2101 Beneficial owner

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