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HeXun Biosciences Co (ROCO:6986) ROC % : 55.56% (As of Jun. 2024)


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What is HeXun Biosciences 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 %. HeXun Biosciences Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 55.56%.

As of today (2025-03-25), HeXun Biosciences Co's WACC % is 10.20%. HeXun Biosciences Co's ROC % is 47.10% (calculated using TTM income statement data). HeXun Biosciences 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.


HeXun Biosciences Co ROC % Historical Data

The historical data trend for HeXun Biosciences 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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HeXun Biosciences Co ROC % Chart

HeXun Biosciences Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROC %
- -25.44 -4.46 13.18

HeXun Biosciences Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial -14.51 5.84 -15.36 40.11 55.56

HeXun Biosciences Co ROC % Calculation

HeXun Biosciences 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 )
=27.374 * ( 1 - 0% )/( (199.007 + 216.431)/ 2 )
=27.374/207.719
=13.18 %

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))
=404.152 - 13.93 - ( 191.742 - max(0, 20.028 - 211.243+191.742))
=199.007

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))
=571.429 - 25.327 - ( 329.671 - max(0, 30.17 - 363.672+329.671))
=216.431

HeXun Biosciences 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 )
=145.956 * ( 1 - 0% )/( (216.431 + 308.96)/ 2 )
=145.956/262.6955
=55.56 %

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))
=571.429 - 25.327 - ( 329.671 - max(0, 30.17 - 363.672+329.671))
=216.431

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


HeXun Biosciences Co  (ROCO:6986) 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, HeXun Biosciences Co's WACC % is 10.20%. HeXun Biosciences Co's ROC % is 47.10% (calculated using TTM income statement data). HeXun Biosciences 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.


HeXun Biosciences Co ROC % Related Terms

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HeXun Biosciences Co Business Description

Traded in Other Exchanges
N/A
Address
Chunri Road, 6 F., No. 1490, Taoyuan District, Taoyuan, TWN
HeXun Biosciences Co Ltd is engaged in the research and development of cell drugs and cell derivatives. It conducts research and development jointly with medical research institutions to use stem cells to treat cardiovascular, immune-inflammatory, and neurodegenerative diseases to develop innovative cell drugs and treatment methods. The company's main business items are new drug research and development, biotechnology services, and research and development services, such as: commissioned research and development and production services for cell medicine, agency testing and development services, and biomedical consulting services, etc.

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