Shentong Robot Education Group Co (HKSE:08206) ROC % : 0.00% (As of Sep. 2024)

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What is Shentong Robot Education Group 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 %. Shentong Robot Education Group Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2024-12-14), Shentong Robot Education Group Co's WACC % is 8.66%. Shentong Robot Education Group Co's ROC % is 2.02% (calculated using TTM income statement data). Shentong Robot Education Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shentong Robot Education Group Co ROC % Historical Data

The historical data trend for Shentong Robot Education Group 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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Shentong Robot Education Group Co ROC % Chart

Shentong Robot Education Group Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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12.03

-13.32

-9.56

-11.02

-12.80

Shentong Robot Education Group Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-25.88	-0.09	3.14	-	-

Shentong Robot Education Group Co ROC % Calculation

Shentong Robot Education Group Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-4.415 * ( 1 - 2.58% )	/	( (45.713	+	21.517)	/ 2 )
=	-4.301093	/	33.615
=	-12.80 %

where

	Invested Capital		(A: Mar. 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	))
=	132.71	-	139.265	-	( 125.439	-	max(0, 180.848	-	128.58	+	125.439	))
=	45.713

	Invested Capital		(A: Mar. 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	))
=	87.875	-	128.738	-	( 77.749	-	max(0, 145.57	-	83.19	+	77.749	))
=	21.517

Shentong Robot Education Group Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (21.517	+	24.341)	/ 2 )
=	0	/	22.929
=	0.00 %

where

	Invested Capital		(Q: Mar. 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	))
=	87.875	-	128.738	-	( 77.749	-	max(0, 145.57	-	83.19	+	77.749	))
=	21.517

	Invested Capital		(Q: Sep. 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	))
=	89.938	-	129.227	-	( 77.236	-	max(0, 150.07	-	86.44	+	77.236	))
=	24.341

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

Shentong Robot Education Group Co (HKSE:08206) 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, Shentong Robot Education Group Co's WACC % is 8.66%. Shentong Robot Education Group Co's ROC % is 2.02% (calculated using TTM income statement data). Shentong Robot Education Group 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.

Shentong Robot Education Group Co ROC % Related Terms

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Shentong Robot Education Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Shentong Robot Education Group Co Ltd (HKSE:08206) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

168-200 Connaught Road Central, Unit 3006, 30th Floor, West Tower, Shun Tak Centre, Hong Kong, HKG

Website

http://www.srobotedu.com

Shentong Robot Education Group Co Ltd is engaged in the promotion of electronic smart cards and the provision of robotics courses. The company has one reportable segment which is the provision of robotics education courses and other related businesses in Heilongjiang Province in the PRC. It earns revenue by charging the enrolled students with published course fees fully in advance. The courses are divided into lessons of equal teaching hours that scheduled across a period of several months to half a year.

Executives

China Communication Group Company Limited	2201 Interest of corporation controlled by you
China Communication Investment Limited	2101 Beneficial owner
Yang Shaohui	2101 Beneficial owner

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