Taiwan Advanced Nanotech (ROCO:6797) ROC % : -32.20% (As of Jun. 2024)

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What is Taiwan Advanced Nanotech 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 %. Taiwan Advanced Nanotech's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -32.20%.

As of today (2025-04-04), Taiwan Advanced Nanotech's WACC % is 3.63%. Taiwan Advanced Nanotech's ROC % is -32.36% (calculated using TTM income statement data). Taiwan Advanced Nanotech earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Taiwan Advanced Nanotech ROC % Historical Data

The historical data trend for Taiwan Advanced Nanotech'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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Taiwan Advanced Nanotech ROC % Chart

Taiwan Advanced Nanotech Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-31.87

163.36

81.16

31.37

-31.83

Taiwan Advanced Nanotech Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial								81.66	-24.31	-25.08	-32.57	-32.20

Taiwan Advanced Nanotech ROC % Calculation

Taiwan Advanced Nanotech'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 )
=	-261.411 * ( 1 - 2.25% )	/	( (803.801	+	801.709)	/ 2 )
=	-255.5292525	/	802.755
=	-31.83 %

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	))
=	2330.444	-	335.569	-	( 1253.527	-	max(0, 500.875	-	1691.949	+	1253.527	))
=	803.801

	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	))
=	1791.005	-	71.65	-	( 925.16	-	max(0, 378	-	1295.646	+	925.16	))
=	801.709

Taiwan Advanced Nanotech'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 )
=	-241.87 * ( 1 - 0% )	/	( (801.709	+	700.645)	/ 2 )
=	-241.87	/	751.177
=	-32.20 %

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	))
=	1791.005	-	71.65	-	( 925.16	-	max(0, 378	-	1295.646	+	925.16	))
=	801.709

	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	))
=	1535.095	-	52.283	-	( 782.167	-	max(0, 251.967	-	1104.624	+	782.167	))
=	700.645

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

Taiwan Advanced Nanotech (ROCO:6797) 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, Taiwan Advanced Nanotech's WACC % is 3.63%. Taiwan Advanced Nanotech's ROC % is -32.36% (calculated using TTM income statement data). Taiwan Advanced Nanotech 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.

Taiwan Advanced Nanotech ROC % Related Terms

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Taiwan Advanced Nanotech Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Taiwan Advanced Nanotech Inc (ROCO:6797) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

No. 188, Wenhe Road, 6th Floor, Leshan Lane, Guishan District, Taoyuan City, TWN, 330

Website

https://www.tanbead.com

Taiwan Advanced Nanotech Inc is engaged in development and manufacturing of various functional nanoparticles and automated nucleic acid extraction machines and trading related businesses. With expertise in automation, buffer optimization and modification of magnetic beads, it focuses on offering customer convenient and practical solutions to advance research, life science and molecular diagnostics. It offers various products to meet the requirements of customers. The company's products include Automated Extraction Instruments; Reagent Kit; Mag Nanoparticles; and Consumables.

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