Hunan Development Group Co (SZSE:000722) ROIC % : 0.27% (As of Mar. 2025)

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What is Hunan Development 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 %. Hunan Development Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 0.27%.

As of today (2025-06-26), Hunan Development Group Co's WACC % is 11.81%. Hunan Development Group Co's ROIC % is 1.06% (calculated using TTM income statement data). Hunan Development Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hunan Development Group Co ROIC % Historical Data

The historical data trend for Hunan Development 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.

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Hunan Development Group Co ROIC % Chart

Hunan Development Group Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROIC %

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2.66

3.13

1.58

1.13

1.85

Hunan Development Group Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
ROIC %	Get a 7-Day Free Trial															3.64	3.09	2.26	-0.80	0.27

Competitive Comparison of Hunan Development Group Co's ROIC %

For the Conglomerates subindustry, Hunan Development 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.

Hunan Development Group Co's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Hunan Development Group Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Hunan Development Group Co's ROIC % falls into.

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Hunan Development Group Co ROIC % Calculation

Hunan Development Group Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROIC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	83.526 * ( 1 - 39.37% )	/	( (2792.288	+	2689.879)	/ 2 )
=	50.6418138	/	2741.0835
=	1.85 %

where

	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	))
=	3622.762	-	118.59	-	( 711.884	-	max(0, 150.037	-	1574.812	+	711.884	))
=	2792.288

	Invested Capital		(A: Dec. 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	))
=	3441.061	-	144.436	-	( 606.746	-	max(0, 168.823	-	1441.889	+	606.746	))
=	2689.879

Hunan Development Group Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

	ROIC % (Q: Mar. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2024 )	+	Invested Capital (Q: Mar. 2025 ))	/ count )
=	16.92 * ( 1 - 57.51% )	/	( (2689.879	+	2671.132)	/ 2 )
=	7.189308	/	2680.5055
=	0.27 %

where

	Invested Capital		(Q: Dec. 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	))
=	3441.061	-	144.436	-	( 606.746	-	max(0, 168.823	-	1441.889	+	606.746	))
=	2689.879

	Invested Capital		(Q: Mar. 2025 )
=	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	))
=	3487.188	-	107.739	-	( 708.317	-	max(0, 192.976	-	1505.214	+	708.317	))
=	2671.132

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) data.

Hunan Development Group Co (SZSE:000722) 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, Hunan Development Group Co's WACC % is 11.81%. Hunan Development Group Co's ROIC % is 1.06% (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.

Hunan Development Group Co ROIC % Related Terms

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Hunan Development Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Hunan Development Group Co Ltd (SZSE:000722) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

27F, Everbright Development Building, Sector 142, Tianxin, Changsha, CHN, 410015

Website

http://www.hnfzgf.com

Hunan Development Group Co Ltd is engaged in hydropower and health industry which include medical, pension, and healthcare. The hydropower stations operated by the company include Zhuzhou navigation and power hub, qiantangxi power station, and bird's nest power station.

Executives

Wang Xiao Wan	Independent director
Ou Yang Fang Rong	Supervisors
Peng Ping	Executives
Xie Chao Bin	Independent director
Wang Zhi Da	Director
Huang Yan Qiao	Supervisors
Shui You Ming	Executives
Yu Wen Xian	Director

Hunan Development Group Co Headlines

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