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# Bilibili ROC %

: -50.70% (As of Sep. 2021)
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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bilibili's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was -50.70%.

As of today (2022-01-19), Bilibili's WACC % is 8.78%. Bilibili's ROC % is -44.69% (calculated using TTM income statement data). Bilibili earns returns that do not match up to its cost of capital. It will destroy value as it grows.

## Bilibili ROC % Historical Data

The historical data trend for Bilibili'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.

Bilibili Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC %
-134.07 -16.65 -22.14 -26.34 -38.28

 Bilibili Quarterly Data Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 ROC % -51.50 -37.56 -38.68 -50.78 -50.70

## Bilibili ROC % Calculation

Bilibili's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

 ROC % (A: Dec. 2020 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 )) / count ) = -480.32098236814 * ( 1 - -1.78% ) / ( (949.19999429688 + 1604.8306393651) / 2 ) = -488.8706958543 / 1277.015316831 = -38.28 %

where

 Invested Capital (A: Dec. 2019 ) = 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 )) = 2212.3225972026 - 400.31595306329 - ( 1150.3240800148 - max(0, 609.1787501604 - 1471.9854000029 + 1150.3240800148 )) = 949.19999429688

 Invested Capital (A: Dec. 2020 ) = 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 )) = 3649.5661615158 - 768.14643769211 - ( 1950.5737617176 - max(0, 1130.3270992308 - 2406.9161836894 + 1950.5737617176 )) = 1604.8306393651

Bilibili's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

 ROC % (Q: Sep. 2021 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 )) / count ) = -1163.5171847653 * ( 1 - -1.07% ) / ( (2085.5755642023 + 2553.5617923579) / 2 ) = -1175.9668186423 / 2319.5686782801 = -50.70 %

where

 Invested Capital (Q: Jun. 2021 ) = 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 )) = 6738.2446692607 - 995.67408560311 - ( 4291.3973540856 - max(0, 1462.7971984436 - 5119.7922178988 + 4291.3973540856 )) = 2085.5755642023

 Invested Capital (Q: Sep. 2021 ) = 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 )) = 6577.6189148584 - 1092.4783544755 - ( 3783.9863389248 - max(0, 1679.9950436008 - 4611.5738116259 + 3783.9863389248 )) = 2553.5617923579

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) 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.

Bilibili  (NAS:BILI) 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, Bilibili's WACC % is 8.78%. Bilibili's ROC % is -44.69% (calculated using TTM income statement data). Bilibili 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.

## Bilibili ROC % Related Terms

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

Industry
Communication Services NAICS : 0 SIC : 0
No. 485 Zhengli Road, Building 3, Guozheng Center, Yangpu District, Shanghai, CHN, 200433
Website
Bilibili Inc is a full-spectrum online entertainment company. It operates as a video sharing Website that covers a range of genres and media formats, including videos, live broadcasting, and mobile games. Its theme features include animation, comic, and game, where users can submit, view, and add commentary subtitles on videos. Geographically, the company is based in China and it generates revenues from mobile games, e-commerce, live broadcasting, and online advertising.

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