Xinjiang East Universe (Group) Gas Co (SHSE:603706) ROC % : 16.24% (As of Mar. 2024)

View and export this data going back to 2018. Start your Free Trial

What is Xinjiang East Universe (Group) Gas 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 %. Xinjiang East Universe (Group) Gas Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 16.24%.

As of today (2024-06-20), Xinjiang East Universe (Group) Gas Co's WACC % is 7.57%. Xinjiang East Universe (Group) Gas Co's ROC % is 11.90% (calculated using TTM income statement data). Xinjiang East Universe (Group) Gas 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.

Xinjiang East Universe (Group) Gas Co ROC % Historical Data

The historical data trend for Xinjiang East Universe (Group) Gas 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.

Xinjiang East Universe (Group) Gas Co ROC % Chart

Xinjiang East Universe (Group) Gas Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

12.35

8.01

9.09

8.62

11.19

Xinjiang East Universe (Group) Gas Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															16.65	6.61	0.42	23.42	16.24

Xinjiang East Universe (Group) Gas Co ROC % Calculation

Xinjiang East Universe (Group) Gas 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 )
=	257.822 * ( 1 - 17.86% )	/	( (1815.634	+	1968.641)	/ 2 )
=	211.7749908	/	1892.1375
=	11.19 %

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	))
=	2661.458	-	281.318	-	( 795.642	-	max(0, 672.233	-	1236.739	+	795.642	))
=	1815.634

	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	))
=	2921.458	-	287.94	-	( 1025.848	-	max(0, 968.894	-	1633.771	+	1025.848	))
=	1968.641

Xinjiang East Universe (Group) Gas Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	367.5 * ( 1 - 15.55% )	/	( (1968.641	+	1853.185)	/ 2 )
=	310.35375	/	1910.913
=	16.24 %

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	))
=	2921.458	-	287.94	-	( 1025.848	-	max(0, 968.894	-	1633.771	+	1025.848	))
=	1968.641

	Invested Capital		(Q: Mar. 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	))
=	2850.376	-	231.556	-	( 963.857	-	max(0, 824.506	-	1590.141	+	963.857	))
=	1853.185

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

Xinjiang East Universe (Group) Gas Co (SHSE:603706) 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, Xinjiang East Universe (Group) Gas Co's WACC % is 7.57%. Xinjiang East Universe (Group) Gas Co's ROC % is 11.90% (calculated using TTM income statement data). Xinjiang East Universe (Group) Gas 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.

Xinjiang East Universe (Group) Gas Co ROC % Related Terms

Thank you for viewing the detailed overview of Xinjiang East Universe (Group) Gas Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Xinjiang East Universe (Group) Gas Co (SHSE:603706) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Xinjiang East Universe (Group) Gas Co Ltd (SHSE:603706) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 198 Yan'an North Road, 24th Floor, Changji Prefecture, Changji City, CHN, 831100

Website

http://www.dfhyrq.com

Xinjiang East Universe (Group) Gas Co Ltd offers gas supplying services. It offers car gas products, residents living gas products, industrial gas products, commercial gas products and other gas equipment installation services.

Executives

Tian Jia	Director
Zhang Ke	Supervisors
Zhou Jing	senior management
Li Wei Wei	senior management
Li Ming	Director

Xinjiang East Universe (Group) Gas Co (SHSE:603706) Headlines

No Headlines