Golden Sun Health Technology Group (Golden Sun Health Technology Group) ROC % : -34.40% (As of Sep. 2023)

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What is Golden Sun Health Technology 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 %. Golden Sun Health Technology Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -34.40%.

As of today (2024-06-10), Golden Sun Health Technology Group's WACC % is 9.73%. Golden Sun Health Technology Group's ROC % is -61.08% (calculated using TTM income statement data). Golden Sun Health Technology Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Golden Sun Health Technology Group ROC % Historical Data

The historical data trend for Golden Sun Health Technology 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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Golden Sun Health Technology Group ROC % Chart

Golden Sun Health Technology Group Annual Data

Trend

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

17.20

-0.88

6.95

-22.58

-64.35

Golden Sun Health Technology Group Semi-Annual Data
	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial				4.55	10.21	-62.88	-92.09	-34.40

Golden Sun Health Technology Group ROC % Calculation

Golden Sun Health Technology Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-6.138 * ( 1 - -2.43% )	/	( (7.225	+	12.316)	/ 2 )
=	-6.2871534	/	9.7705
=	-64.35 %

where

	Invested Capital		(A: Sep. 2022 )
=	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	))
=	23.439	-	6.667	-	( 20.348	-	max(0, 12.569	-	22.116	+	20.348	))
=	7.225

	Invested Capital		(A: 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	))
=	19.448	-	5.894	-	( 6.553	-	max(0, 10.816	-	12.054	+	6.553	))
=	12.316

Golden Sun Health Technology Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-4.152 * ( 1 - 2.04% )	/	( (11.332	+	12.316)	/ 2 )
=	-4.0672992	/	11.824
=	-34.40 %

where

	Invested Capital		(Q: Mar. 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	))
=	21.562	-	6.004	-	( 12.713	-	max(0, 10.394	-	14.62	+	12.713	))
=	11.332

	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	))
=	19.448	-	5.894	-	( 6.553	-	max(0, 10.816	-	12.054	+	6.553	))
=	12.316

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

Golden Sun Health Technology Group (NAS:GSUN) 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, Golden Sun Health Technology Group's WACC % is 9.73%. Golden Sun Health Technology Group's ROC % is -61.08% (calculated using TTM income statement data). Golden Sun Health Technology 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.

Golden Sun Health Technology Group ROC % Related Terms

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Golden Sun Health Technology Group (Golden Sun Health Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Golden Sun Health Technology Group Ltd (NAS:GSUN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Profit Huiyin Square North Building, Huashan 2018, Unit 1001, Xuhui District, Shanghai, CHN

Website

https://www.jtyjyjt.com

Golden Sun Education Group Ltd is engaged in the provision of education and management services in the People's Republic of China. The company offers private school educational services and foreign language tutorial services and other education training management services. The firm operates four tutorial centers; Yangfushan Tutorial offers a Gaokao repeater tutorial program to high school students who retake Gaokao, Hongkou Tutorial offers various English and other foreign language tutorial programs, Jicai Tutorial offers non-English foreign language tutorial programs to individual students, companies, and other organizations and Zhouzhi Tutorial offers non-English foreign language tutorial programs to individual students, companies and other organizations.