Miko International Holdings (HKSE:01247) ROC % : -20.44% (As of Dec. 2023)

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What is Miko International 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 %. Miko International Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -20.44%.

As of today (2024-05-28), Miko International Holdings's WACC % is 4.38%. Miko International Holdings's ROC % is -12.50% (calculated using TTM income statement data). Miko International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Miko International Holdings ROC % Historical Data

The historical data trend for Miko International 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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Miko International Holdings ROC % Chart

Miko International Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-33.32

-31.15

-9.24

-5.24

-10.63

Miko International Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															6.32	-14.07	3.11	-7.50	-20.44

Miko International Holdings ROC % Calculation

Miko International 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 )
=	-15.219 * ( 1 - -0.35% )	/	( (153.431	+	133.895)	/ 2 )
=	-15.2722665	/	143.663
=	-10.63 %

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	))
=	265.934	-	71.476	-	( 41.027	-	max(0, 107.171	-	168.475	+	41.027	))
=	153.431

	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	))
=	239.049	-	61.708	-	( 43.446	-	max(0, 80.302	-	190.277	+	43.446	))
=	133.895

Miko International Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-21.708 * ( 1 - -0.4% )	/	( (79.332	+	133.895)	/ 2 )
=	-21.794832	/	106.6135
=	-20.44 %

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	))
=	262.769	-	72.752	-	( 110.685	-	max(0, 91.346	-	217.802	+	110.685	))
=	79.332

	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	))
=	239.049	-	61.708	-	( 43.446	-	max(0, 80.302	-	190.277	+	43.446	))
=	133.895

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

Miko International Holdings (HKSE:01247) 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, Miko International Holdings's WACC % is 4.38%. Miko International Holdings's ROC % is -12.50% (calculated using TTM income statement data). Miko International 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.

Miko International Holdings ROC % Related Terms

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Miko International Holdings (HKSE:01247) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Miko International Holdings Ltd (HKSE:01247) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 168, Chong Rong Street, Economic Technology Development Zone, Hongbaber Industrial Park, Fujian Province, Quanzhou, CHN, 362000

Website

http://www.redkids.com

Miko International Holdings Ltd along with its subsidiaries is principally engaged in the business of design, manufacture, and sales of children's apparel products. The business operates in two segments namely manufacture and wholesale of children's apparel products and retail outlets of children's apparel products. The wholesaler segment generates maximum revenue for the company. All of its revenue is generated from Mainland China.

Executives

Chen Hsin Fu	2201 Interest of corporation controlled by you
Goldrun Limited	2101 Beneficial owner
Ding Peiji	2201 Interest of corporation controlled by you
Ding Peiji	2101 Beneficial owner
Ding Peiyuan	2201 Interest of corporation controlled by you
Ding Lizhen	2101 Beneficial owner
Think Wise Holdings Investment Limited	2101 Beneficial owner

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