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Nanjing Wondux Environmental Protection Technology (SHSE:688178) ROC % : 4.51% (As of Sep. 2024)


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What is Nanjing Wondux Environmental Protection Technology 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 %. Nanjing Wondux Environmental Protection Technology's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.51%.

As of today (2024-12-15), Nanjing Wondux Environmental Protection Technology's WACC % is 7.56%. Nanjing Wondux Environmental Protection Technology's ROC % is -2.73% (calculated using TTM income statement data). Nanjing Wondux Environmental Protection Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nanjing Wondux Environmental Protection Technology ROC % Historical Data

The historical data trend for Nanjing Wondux Environmental Protection Technology'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.

Nanjing Wondux Environmental Protection Technology ROC % Chart

Nanjing Wondux Environmental Protection Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 26.40 16.30 10.65 5.80 -4.11

Nanjing Wondux Environmental Protection Technology 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 0.60 -13.73 0.28 -3.90 4.51

Nanjing Wondux Environmental Protection Technology ROC % Calculation

Nanjing Wondux Environmental Protection Technology'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 )
=-65.235 * ( 1 - 17.06% )/( (1238.523 + 1393.781)/ 2 )
=-54.105909/1316.152
=-4.11 %

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))
=2151.506 - 531.367 - ( 381.616 - max(0, 835.841 - 1658.467+381.616))
=1238.523

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))
=2188.31 - 589.764 - ( 204.765 - max(0, 859.497 - 1394.706+204.765))
=1393.781

Nanjing Wondux Environmental Protection Technology'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 )
=85.496 * ( 1 - 14.13% )/( (1603.814 + 1653.685)/ 2 )
=73.4154152/1628.7495
=4.51 %

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))
=2203.873 - 457.142 - ( 142.917 - max(0, 780.471 - 1219.161+142.917))
=1603.814

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))
=2144.355 - 392.229 - ( 98.441 - max(0, 661.603 - 1177.002+98.441))
=1653.685

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.


Nanjing Wondux Environmental Protection Technology  (SHSE:688178) 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, Nanjing Wondux Environmental Protection Technology's WACC % is 7.56%. Nanjing Wondux Environmental Protection Technology's ROC % is -2.73% (calculated using TTM income statement data). Nanjing Wondux Environmental Protection Technology 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.


Nanjing Wondux Environmental Protection Technology ROC % Related Terms

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Nanjing Wondux Environmental Protection Technology Business Description

Traded in Other Exchanges
N/A
Address
No. 57 Gande Road, Jiangning District, Jiangsu Province, Nanjing, CHN, 211100
Nanjing Wondux Environmental Protection Technology Corp Ltd is engaged in waste pollution reduction and repair business and provides high-level wastewater treatment. The company's projects include foreign engineering projects; waste treatment projects; leachate (filtration) liquid treatment engineering; air pollution prevention engineering; soil restoration; and ecological restoration.
Executives
Zhang Xiao Sai senior management
Yuan Dao Ying Directors, senior managers
Han Hui Suo Director
Lin Shi Hua senior management
Chen Can Directors, senior managers
Dai Xin senior management
Zhang Kai Sheng senior management
Xu Bin senior management

Nanjing Wondux Environmental Protection Technology Headlines

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