Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) ROIC % : 0.91% (As of Mar. 2024)

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What is Jiangsu Wuyang Automation Control Technology Co 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 %. Jiangsu Wuyang Automation Control Technology Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 0.91%.

As of today (2024-06-13), Jiangsu Wuyang Automation Control Technology Co's WACC % is 10.60%. Jiangsu Wuyang Automation Control Technology Co's ROIC % is 7.43% (calculated using TTM income statement data). Jiangsu Wuyang Automation Control Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jiangsu Wuyang Automation Control Technology Co ROIC % Historical Data

The historical data trend for Jiangsu Wuyang Automation Control Technology Co'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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Jiangsu Wuyang Automation Control Technology Co ROIC % Chart

Jiangsu Wuyang Automation Control Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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10.64

10.17

-1.59

4.24

7.49

Jiangsu Wuyang Automation Control Technology Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															1.14	9.96	7.30	22.38	0.91

Competitive Comparison of Jiangsu Wuyang Automation Control Technology Co's ROIC %

For the Conglomerates subindustry, Jiangsu Wuyang Automation Control Technology Co'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.

Jiangsu Wuyang Automation Control Technology Co's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Jiangsu Wuyang Automation Control Technology Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Jiangsu Wuyang Automation Control Technology Co's ROIC % falls into.

Jiangsu Wuyang Automation Control Technology Co ROIC % Calculation

Jiangsu Wuyang Automation Control Technology Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	156.055 * ( 1 - -13.83% )	/	( (2468.671	+	2276.787)	/ 2 )
=	177.6374065	/	2372.729
=	7.49 %

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	))
=	3565.059	-	526.378	-	( 570.01	-	max(0, 919.76	-	2291.084	+	570.01	))
=	2468.671

	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	))
=	3535.722	-	471.731	-	( 787.204	-	max(0, 870.762	-	2267.6	+	787.204	))
=	2276.787

Jiangsu Wuyang Automation Control Technology Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	24.252 * ( 1 - 13.99% )	/	( (2276.787	+	2289.11)	/ 2 )
=	20.8591452	/	2282.9485
=	0.91 %

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	))
=	3535.722	-	471.731	-	( 787.204	-	max(0, 870.762	-	2267.6	+	787.204	))
=	2276.787

	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	))
=	3453.376	-	418.997	-	( 745.269	-	max(0, 783.63	-	2201.687	+	745.269	))
=	2289.11

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

Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) 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, Jiangsu Wuyang Automation Control Technology Co's WACC % is 10.60%. Jiangsu Wuyang Automation Control Technology Co's ROIC % is 7.43% (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.

Jiangsu Wuyang Automation Control Technology Co ROIC % Related Terms

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Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Jiangsu Wuyang Automation Control Technology Co Ltd (SZSE:300420) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

East of Yinshan Road, Zhujiang North Road, Tongshan New District, Xuzhou, CHN, 221116

Website

http://www.wuyangkeji.com

Jiangsu Wuyang Parking Industry Group Co Ltd is a conglomerate. Its main business covers intelligent garage, automated production line, three-dimensional storage, mine safety equipment, unmanned ships, financial services, six major sections, with Wuyang, Flextronics two brands, under the jurisdiction of Xuzhou, Shenzhen, Hefei and other bases. Based on industrial control technology, the company focuses on the Research and Development, design, production, and sales of automation equipment. It also has a smart garage business.

Executives

Hou You Fu	Director
Zhang Ye	Supervisors
Hu Yun Gao	Directors, executives
Cai Min	Director
Sun Jin Ming	Directors, executives
Liu Long Bao	Director
Tong Min	Director
Zhang Li Yong	Directors, executives
Wang Chong Gui	Independent director
Du Jin Feng	Director

Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) Headlines

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