Fujian Aonong Biological Technology Grouporp (SHSE:603363) ROC % : -7.58% (As of Mar. 2024)

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What is Fujian Aonong Biological Technology Grouporp 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 %. Fujian Aonong Biological Technology Grouporp's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -7.58%.

As of today (2024-06-06), Fujian Aonong Biological Technology Grouporp's WACC % is 6.74%. Fujian Aonong Biological Technology Grouporp's ROC % is -12.71% (calculated using TTM income statement data). Fujian Aonong Biological Technology Grouporp earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fujian Aonong Biological Technology Grouporp ROC % Historical Data

The historical data trend for Fujian Aonong Biological Technology Grouporp'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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Fujian Aonong Biological Technology Grouporp ROC % Chart

Fujian Aonong Biological Technology Grouporp Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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6.93

14.23

-5.24

-1.29

-11.81

Fujian Aonong Biological Technology Grouporp Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-3.51	-11.07	-9.08	-22.75	-7.58

Fujian Aonong Biological Technology Grouporp ROC % Calculation

Fujian Aonong Biological Technology Grouporp'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 )
=	-2117.167 * ( 1 - -2.36% )	/	( (19771.515	+	16918.018)	/ 2 )
=	-2167.1321412	/	18344.7665
=	-11.81 %

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	))
=	18663.443	-	5421.737	-	( 721.688	-	max(0, 11645.15	-	5115.341	+	721.688	))
=	19771.515

	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	))
=	13625.213	-	5277.46	-	( 212.264	-	max(0, 11359.386	-	2789.121	+	212.264	))
=	16918.018

Fujian Aonong Biological Technology Grouporp's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-1285.028 * ( 1 - 1.36% )	/	( (16918.018	+	16519.973)	/ 2 )
=	-1267.5516192	/	16718.9955
=	-7.58 %

where

	Invested Capital		(Q: 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	))
=	13625.213	-	5277.46	-	( 212.264	-	max(0, 11359.386	-	2789.121	+	212.264	))
=	16918.018

	Invested Capital		(Q: Mar. 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	))
=	12599.65	-	4816.936	-	( 207.956	-	max(0, 11125.95	-	2388.691	+	207.956	))
=	16519.973

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

Fujian Aonong Biological Technology Grouporp (SHSE:603363) 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, Fujian Aonong Biological Technology Grouporp's WACC % is 6.74%. Fujian Aonong Biological Technology Grouporp's ROC % is -12.71% (calculated using TTM income statement data). Fujian Aonong Biological Technology Grouporp 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.

Fujian Aonong Biological Technology Grouporp ROC % Related Terms

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Fujian Aonong Biological Technology Grouporp (SHSE:603363) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fujian Aonong Biological Technology Group Incorp Ltd (SHSE:603363) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Guanyinshan Operation Center, 12th Floor, Building 10, Siming District, Fujian Province, Xiamen, CHN, 361008

Website

http://www.aonong.com.cn

Fujian Aonong Biological Technology Group Incorp Ltd is an agricultural and animal husbandry enterprise in China. The principal business activities of the company include feed-oriented service, animal protection, pig raising, and raw material trade. In addition, the company's insurance business mainly relies on the feed marketing system throughout the country to provide downstream farmers with relevant products for disease prevention and control.

Executives

Wu You Lin	Directors, senior managers
Huang Hua Dong	Director
Wen Qing Qi	Supervisors
Huang Zu Yao	Director
Lai Jun	senior management
Ye Jun Biao	Director
Yang Jing Quan	senior management
Ding Neng Shui	Director
Luo Zuo Ming	senior management
Hong Yuan Xiang	senior management
Guo Si Hu	senior management
Wu Jun	Director
Huang Ze Sen	senior management
Hou Hao Feng	senior management
Li Hai Feng	senior management

Fujian Aonong Biological Technology Grouporp (SHSE:603363) Headlines

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