Cabio Biotech (Wuhan) Co (SHSE:688089) ROC % : 12.11% (As of Dec. 2024)

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What is Cabio Biotech (Wuhan) 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 %. Cabio Biotech (Wuhan) Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 12.11%.

As of today (2025-03-30), Cabio Biotech (Wuhan) Co's WACC % is 15.18%. Cabio Biotech (Wuhan) Co's ROC % is 8.25% (calculated using TTM income statement data). Cabio Biotech (Wuhan) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cabio Biotech (Wuhan) Co ROC % Historical Data

The historical data trend for Cabio Biotech (Wuhan) 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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Cabio Biotech (Wuhan) Co ROC % Chart

Cabio Biotech (Wuhan) Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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22.20

15.14

8.61

7.19

8.17

Cabio Biotech (Wuhan) Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															9.92	5.81	10.76	4.21	12.11

Cabio Biotech (Wuhan) Co ROC % Calculation

Cabio Biotech (Wuhan) Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	129.065 * ( 1 - 14.08% )	/	( (1273.815	+	1439.345)	/ 2 )
=	110.892648	/	1356.58
=	8.17 %

where

	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	))
=	1611.493	-	97.97	-	( 239.708	-	max(0, 112.423	-	708.778	+	239.708	))
=	1273.815

	Invested Capital		(A: Dec. 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	))
=	1686.817	-	94.29	-	( 153.182	-	max(0, 101.793	-	656.674	+	153.182	))
=	1439.345

Cabio Biotech (Wuhan) Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	201.376 * ( 1 - 14.43% )	/	( (1405.512	+	1439.345)	/ 2 )
=	172.3174432	/	1422.4285
=	12.11 %

where

	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	))
=	1664.594	-	100.444	-	( 158.638	-	max(0, 108.024	-	672.289	+	158.638	))
=	1405.512

	Invested Capital		(Q: Dec. 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	))
=	1686.817	-	94.29	-	( 153.182	-	max(0, 101.793	-	656.674	+	153.182	))
=	1439.345

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

Cabio Biotech (Wuhan) Co (SHSE:688089) 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, Cabio Biotech (Wuhan) Co's WACC % is 15.18%. Cabio Biotech (Wuhan) Co's ROC % is 8.25% (calculated using TTM income statement data). Cabio Biotech (Wuhan) 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.

Cabio Biotech (Wuhan) Co ROC % Related Terms

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Cabio Biotech (Wuhan) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Cabio Biotech (Wuhan) Co Ltd (SHSE:688089) » Definitions » ROC %

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Address

No. 999, Gaoxin Avenue, East Lake New Technology Development Zone, Hubei Province, Wuhan, CHN, 430075

Website

http://www.cabio.cn

Cabio Biotech (Wuhan) Co Ltd is a biotechnology company, engaged in Research & Development, production and sales of polyunsaturated fatty acids ARA, algae oil DHA and SA, natural B-carotene and other series products. The products are used in infant formula, dietary nutrition supplements and health Food, special medical formula food and other fields. The company's product sales area covers China, the United States, Europe, Australia, New Zealand, South Korea, and Southeast Asia.

Executives

Shang Yun	Core technical personnel
Xiao Min	senior management
Wang Hua Biao	Directors, senior managers
Geng An Feng	senior management
Du Bin	Director
Yi Hua Rong	senior management
Ma Tao	senior management
Li Xiang Yu	senior management
Wu Yu Jun	Supervisors
Wang Zhi Ming	senior management
Lu Shu Huan	Core technical personnel
Yi De Wei	Director

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