GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Eclatorq Technology Co Ltd (ROCO:6855) » Definitions » ROC %

Eclatorq Technology Co (ROCO:6855) ROC % : 25.52% (As of Sep. 2024)


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

What is Eclatorq 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 %. Eclatorq Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 25.52%.

As of today (2025-03-04), Eclatorq Technology Co's WACC % is 9.65%. Eclatorq Technology Co's ROC % is 22.52% (calculated using TTM income statement data). Eclatorq 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.


Eclatorq Technology Co ROC % Historical Data

The historical data trend for Eclatorq 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.

* Premium members only.

Eclatorq Technology Co ROC % Chart

Eclatorq Technology Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
46.05 43.39 48.17 24.61 20.28

Eclatorq Technology Co Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.97 20.39 21.72 23.44 25.52

Eclatorq Technology Co ROC % Calculation

Eclatorq 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 )
=147.067 * ( 1 - 20.5% )/( (533.399 + 619.374)/ 2 )
=116.918265/576.3865
=20.28 %

where

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))
=1050.762 - 114.79 - ( 316.598 - max(0, 319.389 - 961.549+316.598))
=619.374

Eclatorq Technology 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: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=211.544 * ( 1 - 19.88% )/( (639.687 + 688.485)/ 2 )
=169.4890528/664.086
=25.52 %

where

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))
=1246.833 - 184.354 - ( 422.792 - max(0, 471.546 - 1161.144+422.792))
=639.687

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))
=1244.696 - 112.256 - ( 443.955 - max(0, 428.329 - 1160.83+443.955))
=688.485

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

* 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.


Eclatorq Technology Co  (ROCO:6855) 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, Eclatorq Technology Co's WACC % is 9.65%. Eclatorq Technology Co's ROC % is 22.52% (calculated using TTM income statement data). Eclatorq 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.


Eclatorq Technology Co ROC % Related Terms

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


Eclatorq Technology Co Business Description

Traded in Other Exchanges
N/A
Address
No.15-1, Beihuan Road, Tanzi District, Taichung, TWN, 42760
Eclatorq Technology Co Ltd is a digital hand tool company that integrates the hand tool companies and IT resources into the production of digital hand tools. Its products include Digital Torque Wrench, Digital Angle Torque Wrench, Digital Adjustable spanner, Digital Adaptor, Calibration Equipment, and Adaptor.

Eclatorq Technology Co Headlines

No Headlines