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China Shipbuilding Industry Group Power Co (SHSE:600482) ROC % : 3.35% (As of Sep. 2024)


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What is China Shipbuilding Industry Group Power Co 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 %. China Shipbuilding Industry Group Power Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 3.35%.

As of today (2024-10-31), China Shipbuilding Industry Group Power Co's WACC % is 7.48%. China Shipbuilding Industry Group Power Co's ROC % is 2.45% (calculated using TTM income statement data). China Shipbuilding Industry Group Power Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


China Shipbuilding Industry Group Power Co ROC % Historical Data

The historical data trend for China Shipbuilding Industry Group Power Co'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.

* Premium members only.

China Shipbuilding Industry Group Power Co ROC % Chart

China Shipbuilding Industry Group Power Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.79 1.60 1.32 1.11 1.72

China Shipbuilding Industry Group Power Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.42 4.63 0.95 3.72 3.35

China Shipbuilding Industry Group Power Co ROC % Calculation

China Shipbuilding Industry Group Power Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=962.411 * ( 1 - 8.81% )/( (48291.262 + 53710.171)/ 2 )
=877.6225909/51000.7165
=1.72 %

where

Invested Capital(A: Dec. 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))
=85867.564 - 15595.918 - ( 21980.384 - max(0, 30598.539 - 60826.91+21980.384))
=48291.262

Invested Capital(A: Dec. 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))
=99119.596 - 18254.95 - ( 27154.475 - max(0, 38632.319 - 73306.992+27154.475))
=53710.171

China Shipbuilding Industry Group Power Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=1788.788 * ( 1 - 5.55% )/( (50821.774 + 49976.635)/ 2 )
=1689.510266/50399.2045
=3.35 %

where

Invested Capital(Q: Jun. 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))
=102381.768 - 20955.014 - ( 30604.98 - max(0, 44454.924 - 76618.354+30604.98))
=50821.774

Invested Capital(Q: Sep. 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))
=105290.133 - 21233.979 - ( 34079.519 - max(0, 45394.351 - 79614.254+34079.519))
=49976.635

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


China Shipbuilding Industry Group Power Co  (SHSE:600482) 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, China Shipbuilding Industry Group Power Co's WACC % is 7.48%. China Shipbuilding Industry Group Power Co's ROC % is 2.45% (calculated using TTM income statement data). China Shipbuilding Industry Group Power Co 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.


China Shipbuilding Industry Group Power Co ROC % Related Terms

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China Shipbuilding Industry Group Power Co Business Description

Traded in Other Exchanges
N/A
Address
Number 8 Fuchang Road, Hebei, Baoding, CHN, 071057
China Shipbuilding Industry Group Power Co Ltd is engaged in manufacturing and supplying power equipment in China and internationally. Its products include diesel engine, gas, steam, heat engine, electric, chemical, marine nuclear, other power equipment, as well as related auxiliary machinery. The company's products are used in automobiles, ships and marine engineering, engineering, machinery, and land-use power plants, as well as petrochemical, civil nuclear power, distributed energy, and other industries.
Executives
Zhang Yi Jie Supervisors
Yuan Jian Qiang Supervisors
Xi Chun Qing Supervisors
Han Jun Director
Zhang Yu Feng senior management
Liu Bao Sheng Director
Tian Yu Shuang Supervisors
Li Sen senior management
Zhang Ya Guang senior management
Wu Lei Director
Li Yong Director
Zhou Zhong Jie senior management
Zhen Zhi Jun Director
Yang Er Shun senior management
Wang Jian Xin senior management

China Shipbuilding Industry Group Power Co Headlines

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