Tianju Dihe (Suzhou) Technology Co (HKSE:02479) ROC % : 9.41% (As of Jun. 2024)

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What is Tianju Dihe (Suzhou) Technology 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 %. Tianju Dihe (Suzhou) Technology Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 9.41%.

As of today (2025-01-19), Tianju Dihe (Suzhou) Technology Co's WACC % is 10.75%. Tianju Dihe (Suzhou) Technology Co's ROC % is 14.29% (calculated using TTM income statement data). Tianju Dihe (Suzhou) Technology 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.

Tianju Dihe (Suzhou) Technology Co ROC % Historical Data

The historical data trend for Tianju Dihe (Suzhou) Technology 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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Tianju Dihe (Suzhou) Technology Co ROC % Chart

Tianju Dihe (Suzhou) Technology Co Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

10.21

8.73

13.48

Tianju Dihe (Suzhou) Technology Co Semi-Annual Data
	Dec21	Dec22	Jun23	Dec23	Jun24
ROC %	-	-	6.33	19.92	9.41

Tianju Dihe (Suzhou) Technology Co ROC % Calculation

Tianju Dihe (Suzhou) Technology 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 )
=	75.318 * ( 1 - 7.19% )	/	( (492.148	+	545.31)	/ 2 )
=	69.9026358	/	518.729
=	13.48 %

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	))
=	831.028	-	77.988	-	( 260.892	-	max(0, 120.481	-	484.109	+	260.892	))
=	492.148

	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	))
=	844.462	-	75.565	-	( 223.587	-	max(0, 151.057	-	526.067	+	223.587	))
=	545.31

Tianju Dihe (Suzhou) Technology 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 )
=	57.418 * ( 1 - 7.29% )	/	( (545.31	+	586.123)	/ 2 )
=	53.2322278	/	565.7165
=	9.41 %

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	))
=	844.462	-	75.565	-	( 223.587	-	max(0, 151.057	-	526.067	+	223.587	))
=	545.31

	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	))
=	1201.677	-	96.693	-	( 518.861	-	max(0, 135.984	-	920.744	+	518.861	))
=	586.123

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

Tianju Dihe (Suzhou) Technology Co (HKSE:02479) 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, Tianju Dihe (Suzhou) Technology Co's WACC % is 10.75%. Tianju Dihe (Suzhou) Technology Co's ROC % is 14.29% (calculated using TTM income statement data). Tianju Dihe (Suzhou) Technology 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.

Tianju Dihe (Suzhou) Technology Co ROC % Related Terms

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Tianju Dihe (Suzhou) Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Tianju Dihe (Suzhou) Technology Co Ltd (HKSE:02479) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

No. 9 Rongfu Street, 16th floor, Suzhou Industrial Park, Jiangsu Province, Suzhou, CHN

Website

https://www.juhe.cn

Tianju Dihe (Suzhou) Technology Co Ltd is an integrated API-enabled data exchange service provider in China. It provide data management solutions, which are customized softwares comprising one or more of our products, including APIMaster, DataArts, QuickBot, SmartShield and AnchorChain. It customers include enterprises such as Tencent, Alibaba, Baidu, NetEase, Meituan, China Mobile, China Unicom, China Telecom, and many other internet companies.

Executives

Hua Huan	2202 Interest of your spouse
Zuo Lei	2101 Beneficial owner
Qiu Jian Qiang	2101 Beneficial owner
Jing Dong Ke Ji Kong Gu Gu Fen You Xian Gong Si	2101 Beneficial owner
Liu Qiangdong Richard	2201 Interest of corporation controlled by you

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