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China Treasures New Materials Group (HKSE:02439) ROC % : 49.59% (As of Jun. 2024)


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What is China Treasures New Materials Group 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 Treasures New Materials Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 49.59%.

As of today (2025-03-04), China Treasures New Materials Group's WACC % is 8.90%. China Treasures New Materials Group's ROC % is 47.76% (calculated using TTM income statement data). China Treasures New Materials Group 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.


China Treasures New Materials Group ROC % Historical Data

The historical data trend for China Treasures New Materials Group'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.

China Treasures New Materials Group ROC % Chart

China Treasures New Materials Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
25.34 44.88 74.57 49.14 44.59

China Treasures New Materials Group Semi-Annual Data
Dec19 Dec20 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial 71.57 36.45 43.86 45.07 49.59

China Treasures New Materials Group ROC % Calculation

China Treasures New Materials Group'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 )
=111.541 * ( 1 - 15.5% )/( (201.272 + 221.497)/ 2 )
=94.252145/211.3845
=44.59 %

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))
=340.425 - 28.341 - ( 110.812 - max(0, 98.262 - 237.178+110.812))
=201.272

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))
=610.378 - 43.579 - ( 345.302 - max(0, 98.264 - 487.351+345.302))
=221.497

China Treasures New Materials Group'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 )
=124.21 * ( 1 - 14.63% )/( (221.497 + 206.198)/ 2 )
=106.038077/213.8475
=49.59 %

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))
=610.378 - 43.579 - ( 345.302 - max(0, 98.264 - 487.351+345.302))
=221.497

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))
=682.624 - 65.494 - ( 410.932 - max(0, 137.761 - 565.377+410.932))
=206.198

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.


China Treasures New Materials Group  (HKSE:02439) 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 Treasures New Materials Group's WACC % is 8.90%. China Treasures New Materials Group's ROC % is 47.76% (calculated using TTM income statement data). China Treasures New Materials Group 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.


China Treasures New Materials Group ROC % Related Terms

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China Treasures New Materials Group Business Description

Traded in Other Exchanges
N/A
Address
No. 3, Jinger Road, South Karen Industrial Zone, Jiutai Economic Development Zone, Jilin Province, Changchun City, CHN
China Treasures New Materials Group Ltd mainly engages in developing and manufacturing biodegradable plastic products in Northeast China. Its biodegradable plastic products mainly come in biodegradable roll bags. The company provides biodegradable plastic products including biodegradable masterbatches that can be used to produce biodegradable plastic products. It has two segments development and manufacture of biodegradable plastic products; and development and manufacture of non-biodegradable automobile plastic parts.
Executives
Zhang Yuqiu
Lvsetianye Technology Holdings Limited
Lvsesenlin Technology Holdings Limited
Shan Yuzhu
Daziran Technology Invest Holdings Limited
China Plastic Environmental Protection Holdings Limited 2101 Beneficial owner
Zhe Jiang An Ji Jing Ji Kai Fa Qu Guan Li Wei Yuan Hui 2201 Interest of corporation controlled by you

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