Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) ROIC % : -12.78% (As of Dec. 2023)

View and export this data going back to 1994. Start your Free Trial

What is Shaanxi Broadcast & TV Network Intermediary (Group) 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 %. Shaanxi Broadcast & TV Network Intermediary (Group) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -12.78%.

As of today (2024-05-02), Shaanxi Broadcast & TV Network Intermediary (Group) Co's WACC % is 6.50%. Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % is -2.24% (calculated using TTM income statement data). Shaanxi Broadcast & TV Network Intermediary (Group) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROIC % Historical Data

The historical data trend for Shaanxi Broadcast & TV Network Intermediary (Group) 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.

* Premium members only.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROIC % Chart

Shaanxi Broadcast & TV Network Intermediary (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

-0.46

2.47

2.55

3.10

-2.25

Shaanxi Broadcast & TV Network Intermediary (Group) Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															3.52	2.09	2.43	-0.30	-12.78

Competitive Comparison of Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC %

For the Broadcasting subindustry, Shaanxi Broadcast & TV Network Intermediary (Group) 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.

Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % falls into.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROIC % Calculation

Shaanxi Broadcast & TV Network Intermediary (Group) 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 )
=	-223.113 * ( 1 - -0.38% )	/	( (9472.07	+	10474.27)	/ 2 )
=	-223.9608294	/	9973.17
=	-2.25 %

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	))
=	11462.303	-	2445.499	-	( 525.812	-	max(0, 4696.853	-	4241.587	+	525.812	))
=	9472.07

	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	))
=	11647.29	-	2378.51	-	( 358.685	-	max(0, 5442.609	-	4237.119	+	358.685	))
=	10474.27

Shaanxi Broadcast & TV Network Intermediary (Group) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-1311.904 * ( 1 - -0.35% )	/	( (10133.093	+	10474.27)	/ 2 )
=	-1316.495664	/	10303.6815
=	-12.78 %

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	))
=	12036.641	-	2201.707	-	( 339.517	-	max(0, 4866.873	-	4568.714	+	339.517	))
=	10133.093

	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	))
=	11647.29	-	2378.51	-	( 358.685	-	max(0, 5442.609	-	4237.119	+	358.685	))
=	10474.27

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

Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) 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, Shaanxi Broadcast & TV Network Intermediary (Group) Co's WACC % is 6.50%. Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % is -2.24% (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.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROIC % Related Terms

Thank you for viewing the detailed overview of Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Shaanxi Broadcast & TV Network Intermediary (Group) Co Ltd (SHSE:600831) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 15 Gaoxin 1st Road, New and High-Technology Development Zone, Xi'an, Shanxi, CHN, 710075

Website

http://www.600831.com

Shaanxi Broadcast & TV Network Intermediary (Group) Co Ltd is engaged in the provision of planning, construction, and operation and management of radio and television network in Shaanxi Province. The company provides digital and cable television services, high-definition interactive services, including basic channel broadcast services, channel broadcast subscription and information services, and video-on-demand services; and data services.

Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) Headlines

No Headlines