Great Wall Motor Co (HKSE:02333) ROC % : 6.26% (As of Dec. 2023)

View and export this data going back to 2003. Start your Free Trial

What is Great Wall Motor 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 %. Great Wall Motor Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.26%.

As of today (2024-04-28), Great Wall Motor Co's WACC % is 9.30%. Great Wall Motor Co's ROC % is 7.27% (calculated using TTM income statement data). Great Wall Motor Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great Wall Motor Co ROC % Historical Data

The historical data trend for Great Wall Motor 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.

Great Wall Motor Co ROC % Chart

Great Wall Motor Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

7.21

7.58

5.69

4.81

4.84

Great Wall Motor Co 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															-1.69	3.87	13.61	6.26	5.91

Great Wall Motor Co ROC % Calculation

Great Wall Motor 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 )
=	8106.216 * ( 1 - 10.24% )	/	( (147297.067	+	153099.552)	/ 2 )
=	7276.1394816	/	150198.3095
=	4.84 %

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	))
=	206991.225	-	46429.067	-	( 38173.204	-	max(0, 106983.558	-	120248.649	+	38173.204	))
=	147297.067

	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	))
=	220145.192	-	58570.269	-	( 54694.919	-	max(0, 121229.134	-	129704.505	+	54694.919	))
=	153099.552

Great Wall Motor Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	9276.932 * ( 1 - 8.83% )	/	( (116965.796	+	153099.552)	/ 2 )
=	8457.7789044	/	135032.674
=	6.26 %

where

	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	))
=	205266.348	-	77396.111	-	( 28936.228	-	max(0, 107868.125	-	118772.566	+	28936.228	))
=	116965.796

	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	))
=	220145.192	-	58570.269	-	( 54694.919	-	max(0, 121229.134	-	129704.505	+	54694.919	))
=	153099.552

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

Great Wall Motor Co (HKSE:02333) 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, Great Wall Motor Co's WACC % is 9.30%. Great Wall Motor Co's ROC % is 7.27% (calculated using TTM income statement data). Great Wall Motor 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.

Great Wall Motor Co ROC % Related Terms

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

Great Wall Motor Co (HKSE:02333) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Great Wall Motor Co Ltd (HKSE:02333) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GWLLY:USA GWLLF:USA GRV:Germany 601633:China

Address

No. 2266 Chaoyang Road South, Hebei Province, Baoding, CHN, 071000

Website

https://www.gwm.com.cn

Chinese automobile manufacturer Great Wall Motor is China's market leader in the SUV and pickup truck segments. In 2022, the company sold over 615,000 Haval-branded SUVs and 160,000 WEY- and Tank-branded SUVs, making it the largest SUV manufacturer by sales volume for the 12th year. It also sold more than 195,000 pickup trucks, also ranked number one in sales volume for 25 consecutive years. China's domestic market accounts for about 90% of Great Wall's revenue, with the balance coming from Russia, the Middle East, South Africa, Australia, and Chile, among others.

Great Wall Motor Co (HKSE:02333) Headlines

No Headlines