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Suzhou Kelida Building & Decoration Co (SHSE:603828) ROC % : 9.20% (As of Sep. 2024)


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What is Suzhou Kelida Building & Decoration 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 %. Suzhou Kelida Building & Decoration Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 9.20%.

As of today (2024-12-13), Suzhou Kelida Building & Decoration Co's WACC % is 5.73%. Suzhou Kelida Building & Decoration Co's ROC % is 2.21% (calculated using TTM income statement data). Suzhou Kelida Building & Decoration Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Suzhou Kelida Building & Decoration Co ROC % Historical Data

The historical data trend for Suzhou Kelida Building & Decoration 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.

Suzhou Kelida Building & Decoration Co ROC % Chart

Suzhou Kelida Building & Decoration Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.21 15.66 -2.95 -4.52 2.27

Suzhou Kelida Building & Decoration 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.56 2.22 2.59 1.29 9.20

Suzhou Kelida Building & Decoration Co ROC % Calculation

Suzhou Kelida Building & Decoration 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 )
=84.856 * ( 1 - 6.98% )/( (3760.172 + 3182.969)/ 2 )
=78.9330512/3471.5705
=2.27 %

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))
=5246.181 - 1841.595 - ( 358.967 - max(0, 3673.967 - 3318.381+358.967))
=3760.172

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))
=5241.158 - 2204.726 - ( 460.616 - max(0, 3685.546 - 3539.009+460.616))
=3182.969

Suzhou Kelida Building & Decoration 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 )
=84.412 * ( 1 - -214.04% )/( (2966.446 + 2793.802)/ 2 )
=265.0874448/2880.124
=9.20 %

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))
=4497.881 - 1556.491 - ( 264.811 - max(0, 2954.04 - 2928.984+264.811))
=2966.446

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))
=4398.78 - 1615.803 - ( 125.455 - max(0, 2861.498 - 2850.673+125.455))
=2793.802

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


Suzhou Kelida Building & Decoration Co  (SHSE:603828) 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, Suzhou Kelida Building & Decoration Co's WACC % is 5.73%. Suzhou Kelida Building & Decoration Co's ROC % is 2.21% (calculated using TTM income statement data). Suzhou Kelida Building & Decoration 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.


Suzhou Kelida Building & Decoration Co ROC % Related Terms

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Suzhou Kelida Building & Decoration Co Business Description

Traded in Other Exchanges
N/A
Address
99 Canal Road, High-tech Zone, Suzhou, CHN, 215011
Suzhou Kelida Building & Decoration Co Ltd is a China-based company which is an architectural decoration company. It is engaged in the design and construction of building walls and public building decoration works. The Company provides decoration work for airports, performing arts centers, and conference & sports centers.
Executives
Gu Jia Director
He Li Min senior management
Gu Long Di Director
Zhao Xue Rong senior management
Chen Feng Directors, senior managers
Wang Jing Directors, senior managers
Yuan Guo Feng senior management
Xu Xing senior management
Wu De Xuan senior management
Gu Yi Ming Director
Sun Zhen Hua senior management
Lu Chong Ming Directors, senior managers
Jiang Hai Feng senior management
Wang Qiu Lin Director
Wu De Xuan senior management

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