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Ever Glory United Holdings (SGX:ZKX) ROIC % : 26.10% (As of Dec. 2023)


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What is Ever Glory United Holdings ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ever Glory United Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 26.10%.

As of today (2024-05-26), Ever Glory United Holdings's WACC % is 10.36%. Ever Glory United Holdings's ROIC % is 80.76% (calculated using TTM income statement data). Ever Glory United 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.


Ever Glory United Holdings ROIC % Historical Data

The historical data trend for Ever Glory United Holdings's ROIC % 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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Ever Glory United Holdings ROIC % Chart

Ever Glory United Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROIC %
12.67 11.14 30.66 82.74

Ever Glory United Holdings Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial - 32.61 29.68 144.80 26.10

Competitive Comparison of Ever Glory United Holdings's ROIC %

For the Engineering & Construction subindustry, Ever Glory United Holdings's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ever Glory United Holdings's ROIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ever Glory United Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Ever Glory United Holdings's ROIC % falls into.



Ever Glory United Holdings ROIC % Calculation

Ever Glory United Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=9.796 * ( 1 - 20.47% )/( (7.697 + 11.136)/ 2 )
=7.7907588/9.4165
=82.74 %

where

Ever Glory United Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=4.204 * ( 1 - 34.07% )/( (10.107 + 11.136)/ 2 )
=2.7716972/10.6215
=26.10 %

where

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

* 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.


Ever Glory United Holdings  (SGX:ZKX) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Ever Glory United Holdings's WACC % is 10.36%. Ever Glory United Holdings's ROIC % is 80.76% (calculated using TTM income statement data). Ever Glory United 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. Ever Glory United 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 %, ROIC % 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.


Ever Glory United Holdings ROIC % Related Terms

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Ever Glory United Holdings (SGX:ZKX) Business Description

Traded in Other Exchanges
N/A
Address
3 Little Road, No. 03-01 CRF Building, Singapore, SGP, 536982
Website
Ever Glory United Holdings Ltd is a Singapore-based M&E engineering service provider specializing in providing a wide range of M&E engineering services. Its services involve projects in both public and private sectors, such as the development or redevelopment of HDB residential flats, private residential properties, private schools, mixed-use properties, commercial buildings, or industrial buildings. It provides M&E engineering services as either an NSC or a DSC. The company specializes in the following areas of M&E engineering services: ACMV systems; electrical engineering systems; FP systems; PSG systems; and IBS.

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