Biwin Storage Technology Co (SHSE:688525) ROC % : -0.77% (As of Sep. 2024)

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What is Biwin Storage 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 %. Biwin Storage Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -0.77%.

As of today (2024-12-12), Biwin Storage Technology Co's WACC % is 9.36%. Biwin Storage Technology Co's ROC % is 4.71% (calculated using TTM income statement data). Biwin Storage Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Biwin Storage Technology Co ROC % Historical Data

The historical data trend for Biwin Storage 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.

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Biwin Storage Technology Co ROC % Chart

Biwin Storage Technology Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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12.25

5.41

11.60

4.88

-9.90

Biwin Storage Technology Co Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial												-12.61	-5.12	14.11	11.48	-0.77

Biwin Storage Technology Co ROC % Calculation

Biwin Storage 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 )
=	-489.731 * ( 1 - 14.98% )	/	( (3232.083	+	5178.715)	/ 2 )
=	-416.3692962	/	4205.399
=	-9.90 %

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	))
=	4411.2	-	381.093	-	( 798.024	-	max(0, 1602.288	-	3523.325	+	798.024	))
=	3232.083

	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	))
=	6332.401	-	807.879	-	( 345.807	-	max(0, 3898.444	-	4880.449	+	345.807	))
=	5178.715

Biwin Storage 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 )
=	-58.22 * ( 1 - 24.34% )	/	( (5398.691	+	6010.832)	/ 2 )
=	-44.049252	/	5704.7615
=	-0.77 %

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	))
=	6889.38	-	770.807	-	( 719.882	-	max(0, 3973.389	-	5355.471	+	719.882	))
=	5398.691

	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	))
=	7414.52	-	681.533	-	( 722.155	-	max(0, 4121.774	-	5394.009	+	722.155	))
=	6010.832

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

Biwin Storage Technology Co (SHSE:688525) 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, Biwin Storage Technology Co's WACC % is 9.36%. Biwin Storage Technology Co's ROC % is 4.71% (calculated using TTM income statement data). Biwin Storage 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.

Biwin Storage Technology Co ROC % Related Terms

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Biwin Storage Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Biwin Storage Technology Co Ltd (SHSE:688525) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

No. 1213, Liuxian Avenue, Taoyuan Street, Floor 1-3, Building 4, Building 4, Zone 2, Zhongguan Honghualing Industrial South District, Pingshan Community, Nanshan District, Guangdong, Shenzhen, CHN, 518055

Website

https://www.biwin.com.cn

Biwin Storage Technology Co Ltd focuses on the research and development and packaging and testing of memory chips. The company integrates storage medium characteristic research, firmware algorithm development, storage chip advanced packaging, storage chip test equipment R&D and algorithm development, brand operation and others. Its memory chip products are widely used in mobile smart terminals, PCs, industry terminals, data centers, smart cars, mobile storage and other information technology fields.

Executives

Li Zhen Hua

Core technical personnel

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