Shonghoya Intl Group (Shonghoya Intl Group) ROC % : -4.83% (As of Mar. 2015)

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What is Shonghoya Intl 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 %. Shonghoya Intl Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2015 was -4.83%.

As of today (2024-06-06), Shonghoya Intl Group's WACC % is 0.00%. Shonghoya Intl Group's ROC % is 0.00% (calculated using TTM income statement data). Shonghoya Intl Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shonghoya Intl Group ROC % Historical Data

The historical data trend for Shonghoya Intl 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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Shonghoya Intl Group ROC % Chart

Shonghoya Intl Group Annual Data

Trend

Jun05

Jun06

Jun07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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-5.21

-23.41

-38.98

-6.46

-4.47

Shonghoya Intl Group Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
ROC %	Get a 7-Day Free Trial															-3.78	-5.80	-5.31	-3.42	-4.83

Shonghoya Intl Group ROC % Calculation

Shonghoya Intl Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	-0.093 * ( 1 - 0% )	/	( (1.949	+	2.216)	/ 2 )
=	-0.093	/	2.0825
=	-4.47 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	0	-	0.666	-	( 0	-	max(0, 2.615	-	0	+	0	))
=	1.949

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	0.003	-	0.926	-	( 0.003	-	max(0, 3.142	-	0.003	+	0.003	))
=	2.216

Shonghoya Intl Group's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2015 is calculated as:

	ROC % (Q: Mar. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2014 )	+	Invested Capital (Q: Mar. 2015 ))	/ count )
=	-0.104 * ( 1 - 0% )	/	( (2.216	+	2.089)	/ 2 )
=	-0.104	/	2.1525
=	-4.83 %

where

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	0.003	-	0.926	-	( 0.003	-	max(0, 3.142	-	0.003	+	0.003	))
=	2.216

	Invested Capital		(Q: Mar. 2015 )
=	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	))
=	0.011	-	1.002	-	( 0.011	-	max(0, 3.091	-	0.011	+	0.011	))
=	2.089

Note: The Operating Income data used here is four times the quarterly (Mar. 2015) data.

Shonghoya Intl Group (OTCPK:SNHO) 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, Shonghoya Intl Group's WACC % is 0.00%. Shonghoya Intl Group's ROC % is 0.00% (calculated using TTM income statement data). Shonghoya Intl 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.

Shonghoya Intl Group ROC % Related Terms

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Shonghoya Intl Group (Shonghoya Intl Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Shonghoya Intl Group Inc (OTCPK:SNHO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 118 Yongyuan Road, Yonghe District, Taipei, TWN

Website

https://www.shonghoya.com/

Shonghoya Intl Group Inc, formerly Deal A Day Group Corp operates in internet sales and marketing industry. It is primarily engaged in the daily deals/group buying arena, print media, software, and application development. It also focuses on marketing coupons to merchants in a localized area. The company develops templates for various categories of deals, such as restaurants, bars, and spas for quick demonstrations, sales, and postings for potential merchant clients.

Executives

Amro A. Albanna	director, 10 percent owner, officer: CEO and Treasurer	871 MARLBOROUGH AVENUE, SUITE 100, RIVERSIDE CA 92507
Steve Bajic	director	918-1030 WEST GEORGIA STREET, VANCOUVER A1 V6E 2Y3

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