Tellhow Sci-Tech Co (SHSE:600590) ROC % : 0.08% (As of Sep. 2024)

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What is Tellhow Sci-Tech 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 %. Tellhow Sci-Tech Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.08%.

As of today (2025-03-03), Tellhow Sci-Tech Co's WACC % is 5.19%. Tellhow Sci-Tech Co's ROC % is -1.15% (calculated using TTM income statement data). Tellhow Sci-Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tellhow Sci-Tech Co ROC % Historical Data

The historical data trend for Tellhow Sci-Tech 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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Tellhow Sci-Tech Co ROC % Chart

Tellhow Sci-Tech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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5.30

9.25

1.48

3.24

-0.31

Tellhow Sci-Tech Co Quarterly Data
	Dec19	Mar20	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															5.59	-35.87	3.25	5.31	0.08

Tellhow Sci-Tech Co ROC % Calculation

Tellhow Sci-Tech 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 )
=	-39.959 * ( 1 - 28.7% )	/	( (9064.833	+	9405.874)	/ 2 )
=	-28.490767	/	9235.3535
=	-0.31 %

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	))
=	14006.862	-	3364.236	-	( 1577.793	-	max(0, 7694.523	-	10021.025	+	1577.793	))
=	9064.833

	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	))
=	13595.994	-	2747.647	-	( 1442.473	-	max(0, 6397.012	-	9072.066	+	1442.473	))
=	9405.874

Tellhow Sci-Tech 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 )
=	6.96 * ( 1 - -0.49% )	/	( (9256.552	+	8765.978)	/ 2 )
=	6.994104	/	9011.265
=	0.08 %

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	))
=	13132.451	-	2369.511	-	( 1506.388	-	max(0, 6580.074	-	8770.406	+	1506.388	))
=	9256.552

	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	))
=	13394.922	-	2765.409	-	( 2043.896	-	max(0, 7405.553	-	9269.088	+	2043.896	))
=	8765.978

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

Tellhow Sci-Tech Co (SHSE:600590) 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, Tellhow Sci-Tech Co's WACC % is 5.19%. Tellhow Sci-Tech Co's ROC % is -1.15% (calculated using TTM income statement data). Tellhow Sci-Tech 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.

Tellhow Sci-Tech Co ROC % Related Terms

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Tellhow Sci-Tech Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Tellhow Sci-Tech Co Ltd (SHSE:600590) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

New and High Technology Development Zone, Taihao Building, Nanchang, Jiangxi, CHN, 330096

Website

http://www.tellhow.com

Tellhow Sci-Tech Co Ltd is a high technology company. It is engaged in industrial development in the fields of military equipment and intelligent power solutions. Tellhow focuses on the research and application of military information technology. The company's Intelligent power segment is based on research and development and service of the grid operation software, intelligent emergency power supply, intelligent power distribution equipment and electrical appliances.

Executives

Zhu Yu Hua	senior management
Ye Min Hua	senior management
Tu Yan Bin	Director
Huang Dai Fang	Director
Ceng Zhi Jie	senior management
Yang Jun	senior management
Wu Ju Lin	senior management
Yang Jian	Director
Wang Hua Yan	senior management
Li Jie Ping	senior management
Mao Yong	Director
Wu Bin	senior management
Rao Lan Xiu	Supervisors
Wan Xiao Min	Supervisors
Zou Ying Ming	senior management

Tellhow Sci-Tech Co Headlines

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