Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co (SHSE:603300) ROC % : 6.86% (As of Sep. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Zhejiang Haikong Nanke Huatie Digital Intelligence & 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 %. Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 6.86%.

As of today (2025-04-06), Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's WACC % is 10.92%. Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's ROC % is 6.56% (calculated using TTM income statement data). Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co ROC % Historical Data

The historical data trend for Zhejiang Haikong Nanke Huatie Digital Intelligence & 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.

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co ROC % Chart

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

9.44

7.77

9.73

8.83

7.66

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology 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															9.00	6.92	5.11	7.38	6.86

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co ROC % Calculation

Zhejiang Haikong Nanke Huatie Digital Intelligence & 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 )
=	1426.23 * ( 1 - 13.94% )	/	( (13412.28	+	18646.289)	/ 2 )
=	1227.413538	/	16029.2845
=	7.66 %

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	))
=	14354.55	-	2048.648	-	( 152.69	-	max(0, 4435.025	-	3328.647	+	152.69	))
=	13412.28

	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	))
=	19221.033	-	1878.139	-	( 241.642	-	max(0, 5540.345	-	4236.95	+	241.642	))
=	18646.289

Zhejiang Haikong Nanke Huatie Digital Intelligence & 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 )
=	1569.348 * ( 1 - 12.87% )	/	( (19319.789	+	20569.554)	/ 2 )
=	1367.3729124	/	19944.6715
=	6.86 %

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	))
=	19967.984	-	1643.55	-	( 122.218	-	max(0, 5521.178	-	4525.823	+	122.218	))
=	19319.789

	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	))
=	21684.902	-	3221.802	-	( 314.147	-	max(0, 7179.118	-	5072.664	+	314.147	))
=	20569.554

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

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co (SHSE:603300) 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, Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's WACC % is 10.92%. Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's ROC % is 6.56% (calculated using TTM income statement data). Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology 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.

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co ROC % Related Terms

Thank you for viewing the detailed overview of Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co Ltd (SHSE:603300) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Shengkang Street, Floor 10, Building 1, Huatie Venture Building, No. 68, Jianggan District, Zhejiang Province, Hangzhou, CHN, 310019

Website

https://www.zjhuatie.cn

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co Ltd is a equipment leasing company. Its main business is to provide construction support equipment, construction repair and maintenance equipment and engineering machinery and other operation and maintenance equipment services. Its products include construction support equipment, aerial work platforms and underground repair and maintenance equipment, which are used in the support and protection of subway and other rail transportation construction, urban renovation projects, building interior and exterior decoration maintenance, urban road construction and maintenance, green garden maintenance, equipment installation and maintenance, logistics warehousing and film and television scene construction, etc.

Executives

Zhou Wei Hong	senior management
Hu Dan Feng	Director
Gui Lin	Supervisors
Guo Hai Bin	senior management
Ying Da Cheng	Director

Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Co Headlines

No Headlines