Huaibei GreenGold Industry Investment Co (HKSE:02450) ROC % : 0.00% (As of Jun. 2024)

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What is Huaibei GreenGold Industry Investment 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 %. Huaibei GreenGold Industry Investment Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2024-12-12), Huaibei GreenGold Industry Investment Co's WACC % is 2.96%. Huaibei GreenGold Industry Investment Co's ROC % is 0.00% (calculated using TTM income statement data). Huaibei GreenGold Industry Investment Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Huaibei GreenGold Industry Investment Co ROC % Historical Data

The historical data trend for Huaibei GreenGold Industry Investment 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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Huaibei GreenGold Industry Investment Co ROC % Chart

Huaibei GreenGold Industry Investment Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

31.91

38.41

10.21

6.71

3.50

Huaibei GreenGold Industry Investment Co Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Jun22	Sep22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial					9.71	5.28	-	-	-

Huaibei GreenGold Industry Investment Co ROC % Calculation

Huaibei GreenGold Industry Investment 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 )
=	107.746 * ( 1 - 14.8% )	/	( (2246.32	+	3001.113)	/ 2 )
=	91.799592	/	2623.7165
=	3.50 %

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	))
=	2560.238	-	484.106	-	( 238.62	-	max(0, 541.952	-	371.764	+	238.62	))
=	2246.32

	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	))
=	2606.49	-	449.872	-	( 80.58	-	max(0, 1282.012	-	437.517	+	80.58	))
=	3001.113

Huaibei GreenGold Industry Investment 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 )
=	0 * ( 1 - 0% )	/	( (3001.113	+	2182.228)	/ 2 )
=	0	/	2591.6705
=	0.00 %

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	))
=	2606.49	-	449.872	-	( 80.58	-	max(0, 1282.012	-	437.517	+	80.58	))
=	3001.113

	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	))
=	2774.129	-	425.375	-	( 610.102	-	max(0, 502.881	-	669.407	+	610.102	))
=	2182.228

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

Huaibei GreenGold Industry Investment Co (HKSE:02450) 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, Huaibei GreenGold Industry Investment Co's WACC % is 2.96%. Huaibei GreenGold Industry Investment Co's ROC % is 0.00% (calculated using TTM income statement data). Huaibei GreenGold Industry Investment 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.

Huaibei GreenGold Industry Investment Co ROC % Related Terms

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Huaibei GreenGold Industry Investment Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Huaibei GreenGold Industry Investment Co Ltd (HKSE:02450) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 3 Taobo Road, 4th Floor, Shuangchuang Service Centre, Song Tuan Town, Lieshan District, Anhui Province, Huaibei, CHN

Website

http://www.ljgfjt.com

Huaibei GreenGold Industry Investment Co Ltd is a China-based company chiefly engaged in the production and sales of construction material products. The company's main products include aggregate products and concrete products. The company derives maximum revenue from Sales of aggregate products and others.

Executives

Huatai Securities Co., Ltd.	2201 Interest of corporation controlled by you
Chu David	2101 Beneficial owner

Huaibei GreenGold Industry Investment Co Headlines

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