JZ (Jianzhi Education Technology Group Co) ROC % : 56.53% (As of Jun. 2024)

View and export this data going back to 2022. Start your Free Trial

What is Jianzhi Education Technology 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 %. Jianzhi Education Technology Group Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 56.53%.

As of today (2025-03-02), Jianzhi Education Technology Group Co's WACC % is 10.13%. Jianzhi Education Technology Group Co's ROC % is -2.84% (calculated using TTM income statement data). Jianzhi Education Technology Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jianzhi Education Technology Group Co ROC % Historical Data

The historical data trend for Jianzhi Education Technology 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.

* Premium members only.

Jianzhi Education Technology Group Co ROC % Chart

Jianzhi Education Technology Group Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

42.33

36.97

10.35

-10.16

-5.93

Jianzhi Education Technology Group Co Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial					64.77	-28.38	2.51	-22.77	56.53

Jianzhi Education Technology Group Co ROC % Calculation

Jianzhi Education Technology Group 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 )
=	-3.415 * ( 1 - -0.06% )	/	( (95.469	+	19.807)	/ 2 )
=	-3.417049	/	57.638
=	-5.93 %

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	))
=	104.325	-	10.176	-	( 9.917	-	max(0, 51.777	-	50.457	+	9.917	))
=	95.469

	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	))
=	21.244	-	7.074	-	( 3.137	-	max(0, 22.772	-	17.135	+	3.137	))
=	19.807

Jianzhi Education Technology Group 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 )
=	7.086 * ( 1 - -9.3% )	/	( (19.807	+	7.593)	/ 2 )
=	7.744998	/	13.7
=	56.53 %

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	))
=	21.244	-	7.074	-	( 3.137	-	max(0, 22.772	-	17.135	+	3.137	))
=	19.807

	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	))
=	20.617	-	10.709	-	( 2.862	-	max(0, 12.933	-	15.248	+	2.862	))
=	7.593

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

Jianzhi Education Technology Group Co (NAS:JZ) 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, Jianzhi Education Technology Group Co's WACC % is 10.13%. Jianzhi Education Technology Group Co's ROC % is -2.84% (calculated using TTM income statement data). Jianzhi Education Technology 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.

Jianzhi Education Technology Group Co ROC % Related Terms

Thank you for viewing the detailed overview of Jianzhi Education Technology Group Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Jianzhi Education Technology Group Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Jianzhi Education Technology Group Co Ltd (NAS:JZ) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Zhichun Road, 27th Floor, Tower A, Yingdu Building, Haidian District, Beijing, CHN, 100086

Website

http://www.jianzhi-jiaoyu.com

Jianzhi Education Technology Group Co Ltd engages in developing educational content to fulfill the massive demand for high-quality, professional development training resources in China. The company and its subsidiaries VIE and VIEs generate subscription revenue through selling subscriptions to online learning platforms, higher education institutions, and other institutional customers under a B2B2C model mainly through the platform of Sentu Academy; offering subscriptions concerning educational content in mobile video packages directly to end users under a B2C model through the platforms such as Fish Learning or Light Class, etc. It has two operating segments: Educational content services and other services and IT-related solution services.