GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Gulf Resources Inc (NAS:GURE) » Definitions » ROC %

Gulf Resources (Gulf Resources) ROC % : -2.51% (As of Sep. 2023)


View and export this data going back to 2006. Start your Free Trial

What is Gulf Resources 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 %. Gulf Resources's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -2.51%.

As of today (2024-04-27), Gulf Resources's WACC % is 5.08%. Gulf Resources's ROC % is -4.67% (calculated using TTM income statement data). Gulf Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Gulf Resources ROC % Historical Data

The historical data trend for Gulf Resources'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.

Gulf Resources ROC % Chart

Gulf Resources Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.02 -6.27 -0.73 -0.45 5.32

Gulf Resources Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 21.17 -85.21 2.75 0.26 -2.51

Gulf Resources ROC % Calculation

Gulf Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=16.482 * ( 1 - 39.57% )/( (200.934 + 173.653)/ 2 )
=9.9600726/187.2935
=5.32 %

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))
=292.431 - 11.129 - ( 108.226 - max(0, 11.776 - 119.425+108.226))
=173.653

Gulf Resources'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: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-5.144 * ( 1 - 21.43% )/( (156.58 + 165.872)/ 2 )
=-4.0416408/161.226
=-2.51 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) 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.


Gulf Resources  (NAS:GURE) 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, Gulf Resources's WACC % is 5.08%. Gulf Resources's ROC % is -4.67% (calculated using TTM income statement data). Gulf Resources 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.


Gulf Resources ROC % Related Terms

Thank you for viewing the detailed overview of Gulf Resources's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Gulf Resources (Gulf Resources) Business Description

Traded in Other Exchanges
Address
Level 11, Vegetable Building, Industrial Park of the East Shouguang City, Shandong, Shouguang, CHN, 262700
Gulf Resources Inc is a holding company engaged in the manufacture and trade of bromine and crude salt, and natural gas; manufactures and sells chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals, and manufactures and sells materials for human and animal antibiotics. It operates in four segments: Bromine, Crude Salt, Chemical Products, and Natural Gas. It derives maximum revenue from the Bromine segment which is commonly used in brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants.
Executives
Xiaobin Liu director, officer: Chief Executive Officer GULF RESOURCES, INC. NO.99 WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Naihui Miao officer: COO and Secretary GULF RESOURCES INC. NO.99, WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Min Li director, officer: Chief Financial Officer CHEMING INDUSTRIAL PARK UNIT, HAOYUAN CHEMICAL COMPANY LIMITED, SHOUGUANG CITY, SHAN F4 F4 262714
Tengfei Zhang director C/O GULF RESOURCES, INC. 99 WENCHANG RD., CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Shengwei Ma director LEVEL 11, VEGETABLE BUILDING, INDUSTRIAL PARK OF THE EAST CITY, SHOUGUANG CITY, SHANGDON PROVI F4 262700
Shitong Jiang director GULF RESOURCES, INC. NO.99 WENCHANG ROAD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY F4 262714
Yang Zou director C/O GULF RESOURCES, INC., 99 WENCHANG RD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Nan Li director C/O GULF RESOURCES, INC., 99 WENCHANG RD, CHENMING INDUSTRIAL PARK, SHOUGUANG CITY, SHANDONG F4 262714
Ming Yang 10 percent owner NO. 501 BO HAI ROAD, SHOUGUANG CITY, SHANDONG F4 262700
Weijie Chen 10 percent owner NORTH WEIGAO ROAD, LUOCHENG SUB-DISTRICT OFFICE, SHOUGUANG F4 262700
Hap Trading, Llc 10 percent owner 395 HUDSON STREET, SUITE 701, NEW YORK NY 10014
Vignolo Biagio M Jr director 1 WHITEHALL STREET, NEW YORK NY 10004
Richard Khaleel director 110 RIVERSIDE DRIVE, APT 3E, NEW YORK NY 10024
Shandong Haoyuan Industry Group Ltd 10 percent owner WO PU TOWN, QING HE OIL EXTRACTION PLANT, 2ND LIVING DISTRICT, SHOUGUANG CITY F4 51800
Wenxiang Yu 10 percent owner NO. 108 SHENG CHENG ROAD, BUILDING NO. 1, UNIT 3, ROOM 402, SHOUGUANG CITY, SHAN F4 262700