China Auto Logistics (China Auto Logistics) ROIC % : -0.70% (As of Sep. 2017)

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What is China Auto Logistics 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 %. China Auto Logistics's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2017 was -0.70%.

As of today (2024-05-11), China Auto Logistics's WACC % is 0.00%. China Auto Logistics's ROIC % is 0.00% (calculated using TTM income statement data). China Auto Logistics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Auto Logistics ROIC % Historical Data

The historical data trend for China Auto Logistics'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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China Auto Logistics ROIC % Chart

China Auto Logistics Annual Data

Trend

Nov07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROIC %

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2.98

0.37

-0.35

-0.84

0.13

China Auto Logistics Quarterly Data
	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17
ROIC %	Get a 7-Day Free Trial															-0.05	-0.02	-0.61	-0.45	-0.70

Competitive Comparison of China Auto Logistics's ROIC %

For the Auto & Truck Dealerships subindustry, China Auto Logistics'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.

China Auto Logistics's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, China Auto Logistics's ROIC % distribution charts can be found below:

* The bar in red indicates where China Auto Logistics's ROIC % falls into.

China Auto Logistics ROIC % Calculation

China Auto Logistics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROIC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	0.233 * ( 1 - -17.97% )	/	( (280.436	+	127.058)	/ 2 )
=	0.2748701	/	203.747
=	0.13 %

where

	Invested Capital		(A: Dec. 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	))
=	288.223	-	38.589	-	( 7.12	-	max(0, 257.197	-	226.395	+	7.12	))
=	280.436

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	160.569	-	30.506	-	( 3.005	-	max(0, 136.645	-	160.221	+	3.005	))
=	127.058

China Auto Logistics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2017 is calculated as:

	ROIC % (Q: Sep. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2017 )	+	Invested Capital (Q: Sep. 2017 ))	/ count )
=	-1 * ( 1 - 0% )	/	( (146.744	+	139.431)	/ 2 )
=	-1	/	143.0875
=	-0.70 %

where

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	158.778	-	10.466	-	( 1.568	-	max(0, 134.831	-	158.457	+	1.568	))
=	146.744

	Invested Capital		(Q: Sep. 2017 )
=	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	))
=	152.934	-	7.76	-	( 5.743	-	max(0, 127.716	-	152.63	+	5.743	))
=	139.431

Note: The Operating Income data used here is four times the quarterly (Sep. 2017) data.

China Auto Logistics (OTCPK:CALIQ) 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, China Auto Logistics's WACC % is 0.00%. China Auto Logistics's ROIC % is 0.00% (calculated using TTM income statement data).

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.

China Auto Logistics ROIC % Related Terms

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China Auto Logistics (China Auto Logistics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » China Auto Logistics Inc (OTCPK:CALIQ) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

86 Tianbao Avenue, Floor 1 FTZ International Auto Mall, Free Trade Zone, Tianjin, CHN, 300461

Website

http://www.chinaautologisticsinc.com

China Auto Logistics Inc is the wholesaler of imported luxury automobiles. The company's operating segment includes Sales of Automobiles; Financing Services and Other Services. It generates maximum revenue from the Sales of Automobiles segment. Entire revenue from operations of the company is generated in China. The company also delivers logistics services related to the automobile importing process and other automobile value-added services, such as assistance with customs clearance, storage, and nationwide delivery services.