Pine Care Group (HKSE:01989) ROC % : -0.27% (As of Sep. 2023)

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What is Pine Care Group 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 %. Pine Care Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -0.27%.

As of today (2024-06-10), Pine Care Group's WACC % is 7.40%. Pine Care Group's ROC % is 0.17% (calculated using TTM income statement data). Pine Care Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pine Care Group ROC % Historical Data

The historical data trend for Pine Care Group'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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Pine Care Group ROC % Chart

Pine Care Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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1.92

1.57

1.07

2.61

1.28

Pine Care Group Semi-Annual Data
	Mar14	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial													0.47	1.18	2.12	0.61	-0.27

Pine Care Group ROC % Calculation

Pine Care Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	14.167 * ( 1 - -12.5% )	/	( (1226.243	+	1263.038)	/ 2 )
=	15.937875	/	1244.6405
=	1.28 %

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	))
=	1088.91	-	22.166	-	( 29.083	-	max(0, 229.35	-	69.851	+	29.083	))
=	1226.243

	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	))
=	1108.264	-	30.024	-	( 23.399	-	max(0, 223.726	-	38.928	+	23.399	))
=	1263.038

Pine Care Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-3.024 * ( 1 - -10.41% )	/	( (1263.038	+	1239.677)	/ 2 )
=	-3.3387984	/	1251.3575
=	-0.27 %

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	))
=	1108.264	-	30.024	-	( 23.399	-	max(0, 223.726	-	38.928	+	23.399	))
=	1263.038

	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	))
=	1074.319	-	30.235	-	( 28.51	-	max(0, 241.211	-	45.618	+	28.51	))
=	1239.677

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

Pine Care Group (HKSE:01989) 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, Pine Care Group's WACC % is 7.40%. Pine Care Group's ROC % is 0.17% (calculated using TTM income statement data). Pine Care Group 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.

Pine Care Group ROC % Related Terms

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Pine Care Group (HKSE:01989) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Pine Care Group Ltd (HKSE:01989) » Definitions » ROC %

Traded in Other Exchanges

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Address

68-72 Yuk Wah Street, Ground Floor, 1 Koon Wah Lane, Tsz Wan Shan, Kowloon, Hong Kong, HKG

Website

https://www.pinecaregroup.com

Pine Care Group Ltd is engaged in the provision of elderly home care services. It operates care and attention homes for the elderly in Hong Kong offering residential care services, nursing care, and medication management. It derives revenue from rendering elderly home care services including the provision of residence, professional nursing and caretaking services, nutritional management, medical services, psychological and social care, and individual care plans; and through the sale of elderly home-related goods and provision of health care services in Hong Kong. The group's revenue is derived solely from its operations in Hong Kong.

Executives

Wong Tak Wai	2304 Executor or administrator
Jong Yat Kit (in The Capacity As The Receiver)	2304 Executor or administrator
Diamond Ridge Holdings Limited	2101 Beneficial owner
Chime Corporation Limited	2201 Interest of corporation controlled by you
Tang Yiu Sing	2201 Interest of corporation controlled by you
Tang Yiu Pong	2201 Interest of corporation controlled by you
Starcorp Limited	2101 Beneficial owner
Smartbase Investments Limited	2101 Beneficial owner
Great Canton Investments Limited	2101 Beneficial owner
Century Fortress Limited	2101 Beneficial owner
Silverage Pine Care Limited
Silverage Pillar Limited
Cho Wing Yin
Ng Kwok Fu Alex
Yim Ting Kwok

Pine Care Group (HKSE:01989) Headlines

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