China Power International Development (HKSE:02380) ROC % : 3.58% (As of Jun. 2024)

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What is China Power International Development 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 %. China Power International Development's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 3.58%.

As of today (2024-12-13), China Power International Development's WACC % is 3.92%. China Power International Development's ROC % is 3.33% (calculated using TTM income statement data). China Power International Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Power International Development ROC % Historical Data

The historical data trend for China Power International Development'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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China Power International Development ROC % Chart

China Power International Development Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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3.29

3.30

1.67

2.09

2.80

China Power International Development Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															2.81	1.49	3.27	2.85	3.58

China Power International Development ROC % Calculation

China Power International Development'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 )
=	9285.656 * ( 1 - 16.45% )	/	( (228483.167	+	326101.094)	/ 2 )
=	7758.165588	/	277292.1305
=	2.80 %

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	))
=	236079.035	-	24390.463	-	( 4843.271	-	max(0, 51285.161	-	34490.566	+	4843.271	))
=	228483.167

	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	))
=	334484.998	-	40681.527	-	( 6341.905	-	max(0, 82220.044	-	49922.421	+	6341.905	))
=	326101.094

China Power International Development'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 )
=	14410.55 * ( 1 - 16.04% )	/	( (326101.094	+	349106.49)	/ 2 )
=	12099.09778	/	337603.792
=	3.58 %

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	))
=	334484.998	-	40681.527	-	( 6341.905	-	max(0, 82220.044	-	49922.421	+	6341.905	))
=	326101.094

	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	))
=	350501.884	-	37815.665	-	( 6798.445	-	max(0, 93290.755	-	56870.484	+	6798.445	))
=	349106.49

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

China Power International Development (HKSE:02380) 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, China Power International Development's WACC % is 3.92%. China Power International Development's ROC % is 3.33% (calculated using TTM income statement data). China Power International Development 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.

China Power International Development ROC % Related Terms

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China Power International Development Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » China Power International Development Ltd (HKSE:02380) » Definitions » ROC %

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CPWIF:USA HPD:Germany

Address

18 Harbour Road, Central Plaza, Suite 6301, 63th Floor, Wanchai, Hong Kong, HKG

Website

http://www.chinapower.hk

China Power International Development Ltd is an integrated energy group that owns coal-fired power, hydropower, nuclear power, and renewable energy resources in the PRC. The company has expanded its business into the areas of hydropower, wind power, photovoltaic power, natural gas power, energy storage, green power transportation, and integrated energy services through continuous development. The Group recognizes revenue from sales of electricity to regional and provincial power grid companies and the provision of power generation and subcontracting services.

Executives

Zhong Guo Zhong Xin Jin Rong Zi Chan Guan Li Gu Fen You Xian Gong Si	2101 Beneficial owner
Guo Jia Dian Li Tou Zi Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
China Power International Holding Limited	2201 Interest of corporation controlled by you
China Power New Energy Limited	2201 Interest of corporation controlled by you
China Power Development Limited

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