Coteccons Construction Joint Stock Company (STC:CTD) ROC % : 1.35% (As of Mar. 2024)

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What is Coteccons Construction Joint Stock Company 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 %. Coteccons Construction Joint Stock Company's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.35%.

As of today (2024-06-07), Coteccons Construction Joint Stock Company's WACC % is 9.82%. Coteccons Construction Joint Stock Company's ROC % is 0.31% (calculated using TTM income statement data). Coteccons Construction Joint Stock Company earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Coteccons Construction Joint Stock Company ROC % Historical Data

The historical data trend for Coteccons Construction Joint Stock Company'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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Coteccons Construction Joint Stock Company ROC % Chart

Coteccons Construction Joint Stock Company Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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31.39

19.56

7.09

2.26

-1.72

Coteccons Construction Joint Stock Company Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial															0.95	-0.47	-0.53	0.42	1.35

Coteccons Construction Joint Stock Company ROC % Calculation

Coteccons Construction Joint Stock Company's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-215338.347 * ( 1 - 36.81% )	/	( (7317152.979	+	8480006.248)	/ 2 )
=	-136072.3014693	/	7898579.6135
=	-1.72 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	14157413.679	-	3462535.873	-	( 3377724.827	-	max(0, 5753169.242	-	12867742.345	+	3377724.827	))
=	7317152.979

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	15049496.143	-	3284091.336	-	( 3285398.559	-	max(0, 6799391.639	-	13875943.285	+	3285398.559	))
=	8480006.248

Coteccons Construction Joint Stock Company's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	186028.42 * ( 1 - 22.98% )	/	( (12043153.97	+	9248622.642)	/ 2 )
=	143279.089084	/	10645888.306
=	1.35 %

where

	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	))
=	20550862.199	-	4428729.941	-	( 4078978.288	-	max(0, 11712930.088	-	18917398.427	+	4078978.288	))
=	12043153.97

	Invested Capital		(Q: Mar. 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	))
=	20932927.805	-	8346605.244	-	( 3337699.919	-	max(0, 12387308.834	-	18590373.14	+	3337699.919	))
=	9248622.642

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

Coteccons Construction Joint Stock Company (STC:CTD) 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, Coteccons Construction Joint Stock Company's WACC % is 9.82%. Coteccons Construction Joint Stock Company's ROC % is 0.31% (calculated using TTM income statement data). Coteccons Construction Joint Stock Company 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.

Coteccons Construction Joint Stock Company ROC % Related Terms

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Coteccons Construction Joint Stock Company (STC:CTD) Business Description

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Traded in Other Exchanges

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Address

236/6 Dien Bien Phu Street, Ward 17, Coteccons Building, Binh Thanh District, Ho Chi Minh, VNM

Website

http://www.coteccons.vn

Coteccons Construction Joint Stock Company constructs and installs civil and industrial, transportation and irrigation works, urban and industrial park infrastructure. It is also involved in the architectural design of general layout plan, civil and industrial works, indoor and outdoor, heating, ventilation, civil and industrial construction, urban infrastructure and air conditioning. The company is in the construction of water drainage and supply, environmental treatment, brokerage, consultancy, land use rights, installation of MEP system. The firm exports and imports iron, steel, building structures, materials and installation equipment, machinery, equipment, spare parts, technological line of construction industry and production of construction materials, machinery, and equipment.

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