Yangtze Optical Fibre and Cable Joint Stock Co (FRA:1YO) ROC % : 5.20% (As of Jun. 2024)

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What is Yangtze Optical Fibre and Cable Joint Stock 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 %. Yangtze Optical Fibre and Cable Joint Stock Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 5.20%.

As of today (2024-12-13), Yangtze Optical Fibre and Cable Joint Stock Co's WACC % is 4.25%. Yangtze Optical Fibre and Cable Joint Stock Co's ROC % is 3.77% (calculated using TTM income statement data). Yangtze Optical Fibre and Cable Joint Stock Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Yangtze Optical Fibre and Cable Joint Stock Co ROC % Historical Data

The historical data trend for Yangtze Optical Fibre and Cable Joint Stock 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.

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Yangtze Optical Fibre and Cable Joint Stock Co ROC % Chart

Yangtze Optical Fibre and Cable Joint Stock Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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8.09

5.04

4.21

7.95

4.48

Yangtze Optical Fibre and Cable Joint Stock Co Quarterly Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															5.16	0.31	1.92	5.20	5.95

Yangtze Optical Fibre and Cable Joint Stock Co ROC % Calculation

Yangtze Optical Fibre and Cable Joint Stock 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 )
=	115.829 * ( 1 - 3.25% )	/	( (2479.332	+	2519.485)	/ 2 )
=	112.0645575	/	2499.4085
=	4.48 %

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	))
=	3818.856	-	571.531	-	( 767.993	-	max(0, 1093.427	-	2087.243	+	767.993	))
=	2479.332

	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	))
=	3742.686	-	588.248	-	( 634.953	-	max(0, 1166.386	-	1869.433	+	634.953	))
=	2519.485

Yangtze Optical Fibre and Cable Joint Stock Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	142.816 * ( 1 - 2.46% )	/	( (2623.372	+	2737.311)	/ 2 )
=	139.3027264	/	2680.3415
=	5.20 %

where

	Invested Capital		(Q: Mar. 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	))
=	3738.996	-	433.145	-	( 682.479	-	max(0, 1064.131	-	1888.739	+	682.479	))
=	2623.372

	Invested Capital		(Q: Jun. 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	))
=	3826.269	-	423.533	-	( 665.425	-	max(0, 1075.753	-	1915.203	+	665.425	))
=	2737.311

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

Yangtze Optical Fibre and Cable Joint Stock Co (FRA:1YO) 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, Yangtze Optical Fibre and Cable Joint Stock Co's WACC % is 4.25%. Yangtze Optical Fibre and Cable Joint Stock Co's ROC % is 3.77% (calculated using TTM income statement data). Yangtze Optical Fibre and Cable Joint Stock 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.

Yangtze Optical Fibre and Cable Joint Stock Co ROC % Related Terms

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Yangtze Optical Fibre and Cable Joint Stock Co Business Description

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06869:Hong Kong 601869:China

Address

No. 9 Guanggu Avenue, East Lake High-tech Development Zone, Hubei Province, Wuhan, CHN, 430073

Website

https://www.yofc.com

Yangtze Optical Fibre and Cable Joint Stock Ltd Co is engaged in the Chinese communication equipment industry. It manufactures and sells optical fiber preforms, optical fibers with various standard specifications that are widely used in the telecommunications industry. It operates its business through three operating segments, optical fibers and optical fiber preforms; and Optical components and modules, optical fiber cables. The manufacture and sale of optical fiber cables provide the company with majority of its revenue. Its other products comprise of trunk cables, patch cords, plug-and-play modules, optical distribution frames, pigtails, adapter panels, splitters, and connecting cabinets.

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