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Jhu Jian Catering Co (ROCO:7723) ROC % : 5.63% (As of Jun. 2024)


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What is Jhu Jian Catering 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 %. Jhu Jian Catering Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 5.63%.

As of today (2024-12-13), Jhu Jian Catering Co's WACC % is 7.12%. Jhu Jian Catering Co's ROC % is 7.52% (calculated using TTM income statement data). Jhu Jian Catering 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.


Jhu Jian Catering Co ROC % Historical Data

The historical data trend for Jhu Jian Catering 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.

Jhu Jian Catering Co ROC % Chart

Jhu Jian Catering Co Annual Data
Trend Dec21 Dec22 Dec23
ROC %
-5.72 13.25 11.57

Jhu Jian Catering Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial 9.59 15.95 14.61 9.52 5.63

Jhu Jian Catering Co ROC % Calculation

Jhu Jian Catering 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 )
=508.431 * ( 1 - 19.84% )/( (2716.241 + 4331.475)/ 2 )
=407.5582896/3523.858
=11.57 %

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))
=3333.045 - 834.947 - ( 378.185 - max(0, 1323.796 - 1105.653+378.185))
=2716.241

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))
=5252.345 - 1004.76 - ( 1225.529 - max(0, 1562.661 - 1478.771+1225.529))
=4331.475

Jhu Jian Catering 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 )
=317.234 * ( 1 - 20.33% )/( (4331.475 + 4647.085)/ 2 )
=252.7403278/4489.28
=5.63 %

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))
=5252.345 - 1004.76 - ( 1225.529 - max(0, 1562.661 - 1478.771+1225.529))
=4331.475

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))
=5063.859 - 887.365 - ( 690.914 - max(0, 1438.346 - 967.755+690.914))
=4647.085

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.


Jhu Jian Catering Co  (ROCO:7723) 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, Jhu Jian Catering Co's WACC % is 7.12%. Jhu Jian Catering Co's ROC % is 7.52% (calculated using TTM income statement data). Jhu Jian Catering 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.


Jhu Jian Catering Co ROC % Related Terms

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Jhu Jian Catering Co Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
4th Floor, No. 455, Chongde 9th Road, Beitun District, Taichung, TWN
Jhu Jian Catering Co Ltd is a company that is a chain catering brand with seafood suppliers, integrating production and sales with Xinfeng Xianhui Aquatic Products to provide a fresh and high-quality seafood supply chain. they choose high-quality and complete food suppliers to provide a variety of selected ingredients that meet food safety standards, Where they combine the concept of "extracting the essence of various ingredients from hundreds of flavors to integrate the characteristics of the ingredients into soups and dishes.

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