Shenzhen UTIMES Intelligent Equipment Co (SHSE:688638) ROC % : -5.32% (As of Sep. 2024)

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What is Shenzhen UTIMES Intelligent Equipment 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 %. Shenzhen UTIMES Intelligent Equipment Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -5.32%.

As of today (2025-04-06), Shenzhen UTIMES Intelligent Equipment Co's WACC % is 9.54%. Shenzhen UTIMES Intelligent Equipment Co's ROC % is -0.54% (calculated using TTM income statement data). Shenzhen UTIMES Intelligent Equipment Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shenzhen UTIMES Intelligent Equipment Co ROC % Historical Data

The historical data trend for Shenzhen UTIMES Intelligent Equipment 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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Shenzhen UTIMES Intelligent Equipment Co ROC % Chart

Shenzhen UTIMES Intelligent Equipment Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

10.40

16.83

16.38

13.97

8.26

Shenzhen UTIMES Intelligent Equipment Co Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial										1.17	13.33	-4.19	-5.50	-5.32

Shenzhen UTIMES Intelligent Equipment Co ROC % Calculation

Shenzhen UTIMES Intelligent Equipment 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 )
=	93.775 * ( 1 - 12.81% )	/	( (800.138	+	1179.347)	/ 2 )
=	81.7624225	/	989.7425
=	8.26 %

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	))
=	1797.622	-	808.573	-	( 188.911	-	max(0, 1486.074	-	1722.225	+	188.911	))
=	800.138

	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	))
=	2054.302	-	464.094	-	( 410.861	-	max(0, 926.254	-	1851.815	+	410.861	))
=	1179.347

Shenzhen UTIMES Intelligent Equipment 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 )
=	-77.692 * ( 1 - 16.83% )	/	( (1238.335	+	1192.447)	/ 2 )
=	-64.6164364	/	1215.391
=	-5.32 %

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	))
=	1865.533	-	334.711	-	( 292.487	-	max(0, 783.417	-	1600.746	+	292.487	))
=	1238.335

	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	))
=	2106.694	-	473.514	-	( 440.733	-	max(0, 989.865	-	1701.78	+	440.733	))
=	1192.447

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

Shenzhen UTIMES Intelligent Equipment Co (SHSE:688638) 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, Shenzhen UTIMES Intelligent Equipment Co's WACC % is 9.54%. Shenzhen UTIMES Intelligent Equipment Co's ROC % is -0.54% (calculated using TTM income statement data). Shenzhen UTIMES Intelligent Equipment 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.

Shenzhen UTIMES Intelligent Equipment Co ROC % Related Terms

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Shenzhen UTIMES Intelligent Equipment Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenzhen UTIMES Intelligent Equipment Co Ltd (SHSE:688638) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Xixiang Street, 17th Floor, Huafeng International Business Building, Baoan, Guangdong, Shenzhen, CHN, 518000

Website

http://www.utimes.cn

Shenzhen UTIMES Intelligent Equipment Co Ltd is engaged in research & development, production and sales of non-standard automated intelligent assembly equipment and testing equipment. The company's main products are lithium-ion battery intelligent equipment and consumer electronics intelligent manufacturing equipment, which can be widely used in the intelligent production and manufacturing of products in multiple fields such as new energy, automotive electronics, and consumer electronics.

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