Guanwei Recycling (Guanwei Recycling) ROC % : 0.00% (As of Dec. 2015)

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What is Guanwei Recycling 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 %. Guanwei Recycling's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was 0.00%.

As of today (2024-05-25), Guanwei Recycling's WACC % is 0.00%. Guanwei Recycling's ROC % is 0.00% (calculated using TTM income statement data). Guanwei Recycling earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Guanwei Recycling ROC % Historical Data

The historical data trend for Guanwei Recycling'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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Guanwei Recycling ROC % Chart

Guanwei Recycling Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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84.41

42.73

23.96

-1.95

Guanwei Recycling Semi-Annual Data
	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15
ROC %	Get a 7-Day Free Trial			84.41	42.73	23.96	-1.95	-

Guanwei Recycling ROC % Calculation

Guanwei Recycling's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-1.58 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-1.58	/	0
=	%

where

	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	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Guanwei Recycling's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2014 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	-1.58 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-1.58	/	0
=	%

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	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is one times the annual (Dec. 2015) data.

Guanwei Recycling (GREY:GPRC) 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, Guanwei Recycling's WACC % is 0.00%. Guanwei Recycling's ROC % is 0.00% (calculated using TTM income statement data). Guanwei Recycling 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.

Guanwei Recycling ROC % Related Terms

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Guanwei Recycling (Guanwei Recycling) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Guanwei Recycling Corp (GREY:GPRC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rong Qiao Economic Zone, Fuqing City, Fujian, CHN, 350301

Website

http://www.guanweirecycling.com

Guanwei Recycling Corp is a plastic recycling company. It is primarily engaged in the manufacture and distribution of low-density polyethylene and other recycled plastic products using the imported raw material in the form of plastic waste. The plastic polymers include Polyethylene terephthalate, High-density polyethylene, Polyvinyl chloride, Low-density polyethylene, Polypropylene, and Polystyrene. Geographically, the activities of the group are functioned through China.

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