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Sichuan Energy Investment Development Co (HKSE:01713) ROC % : 5.39% (As of Jun. 2024)


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What is Sichuan Energy Investment Development 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 %. Sichuan Energy Investment Development Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 5.39%.

As of today (2024-12-13), Sichuan Energy Investment Development Co's WACC % is 6.44%. Sichuan Energy Investment Development Co's ROC % is 7.34% (calculated using TTM income statement data). Sichuan Energy Investment Development Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Sichuan Energy Investment Development Co ROC % Historical Data

The historical data trend for Sichuan Energy Investment Development 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.

Sichuan Energy Investment Development Co ROC % Chart

Sichuan Energy Investment Development Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only 5.93 7.81 7.43 6.90 7.31

Sichuan Energy Investment Development Co Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.56 7.80 5.74 9.23 5.39

Sichuan Energy Investment Development Co ROC % Calculation

Sichuan Energy Investment Development 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 )
=477.156 * ( 1 - 16.42% )/( (4896.378 + 6019.37)/ 2 )
=398.8069848/5457.874
=7.31 %

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))
=5748.86 - 1007.422 - ( 846.344 - max(0, 1687.998 - 1533.058+846.344))
=4896.378

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))
=6917.971 - 1274.905 - ( 536.213 - max(0, 2085.878 - 1709.574+536.213))
=6019.37

Sichuan Energy Investment Development 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: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=401.772 * ( 1 - 19.37% )/( (6019.37 + 5995.571)/ 2 )
=323.9487636/6007.4705
=5.39 %

where

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))
=6917.971 - 1274.905 - ( 536.213 - max(0, 2085.878 - 1709.574+536.213))
=6019.37

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))
=7017.717 - 1317.052 - ( 577.107 - max(0, 2152.541 - 1857.635+577.107))
=5995.571

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.


Sichuan Energy Investment Development Co  (HKSE:01713) 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, Sichuan Energy Investment Development Co's WACC % is 6.44%. Sichuan Energy Investment Development Co's ROC % is 7.34% (calculated using TTM income statement data). Sichuan Energy Investment Development Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


Sichuan Energy Investment Development Co ROC % Related Terms

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Sichuan Energy Investment Development Co Business Description

Traded in Other Exchanges
Address
No. 789, Renhe Road, Wenjiang District, Sichuan Province, Chengdu, CHN, 610081
Sichuan Energy Investment Development Co Ltd is a vertically integrated power supplier and service provider. The Company, together with its subsidiaries, is principally engaged in the power business and power engineering construction services and related businesses. The power business mainly includes power generation and power supply services. EECS business, which consists of electrical engineering construction service and sales of electric equipment and materials.
Executives
Si Chuan Sheng Neng Yuan Tou Zi Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Yi Bin Fa Zhan Kong Gu Ji Tuan You Xian Gong Si 2101 Beneficial owner
Gao Xian Guo You Zi Chan Jing Ying Guan Li You Xian Ze Ren Gong Si 2101 Beneficial owner
Zhong Guo Dian Li Guo Ji Fa Zhan You Xian Gong Si 2101 Beneficial owner
Si Chuan Sheng Shui Dian Tou Zi Jing Ying Ji Tuan You Xian Gong Si 2101 Beneficial owner
Si Chuan Fa Zhan Kong Gu You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
San Xia Zi Ben Kong Gu You Xian Ze Ren Gong Si 2101 Beneficial owner
Zhong Guo Chang Jiang San Xia Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Tianqi Lithium Hk Co.,ltd 2101 Beneficial owner
Jinneng Holding (hong Kong) Limited 2101 Beneficial owner
Si Chuan Jin Neng Neng Yuan Ji Tuan You Xian Gong Si 2201 Interest of corporation controlled by you
Wang Wenxiang 2201 Interest of corporation controlled by you
Tian Qiu 2201 Interest of corporation controlled by you
Bei Jing Heng Hua Wei Ye Ke Ji Gu Fen You Xian Gong Si 2101 Beneficial owner
Si Chuan Sheng Tou Zi Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you

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