Jinzhou Portco Co (SHSE:900952) ROC % : 2.60% (As of Mar. 2024)

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What is Jinzhou Portco 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 %. Jinzhou Portco Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 2.60%.

As of today (2024-06-25), Jinzhou Portco Co's WACC % is 6.92%. Jinzhou Portco Co's ROC % is 1.94% (calculated using TTM income statement data). Jinzhou Portco Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jinzhou Portco Co ROC % Historical Data

The historical data trend for Jinzhou Portco 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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Jinzhou Portco Co ROC % Chart

Jinzhou Portco Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.60

3.03

2.79

2.10

1.69

Jinzhou Portco Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															1.66	2.29	0.05	1.63	2.60

Jinzhou Portco Co ROC % Calculation

Jinzhou Portco 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 )
=	63.061 * ( 1 - 23.88% )	/	( (2915.916	+	2759.06)	/ 2 )
=	48.0020332	/	2837.488
=	1.69 %

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	))
=	2535.265	-	260.368	-	( 222.956	-	max(0, 1098.129	-	457.11	+	222.956	))
=	2915.916

	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	))
=	2410.14	-	301.271	-	( 224.113	-	max(0, 1064.797	-	414.606	+	224.113	))
=	2759.06

Jinzhou Portco Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	81.26 * ( 1 - 11.97% )	/	( (2759.06	+	2736.4)	/ 2 )
=	71.533178	/	2747.73
=	2.60 %

where

	Invested Capital		(Q: 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	))
=	2410.14	-	301.271	-	( 224.113	-	max(0, 1064.797	-	414.606	+	224.113	))
=	2759.06

	Invested Capital		(Q: Mar. 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	))
=	2385.723	-	257.869	-	( 208.308	-	max(0, 1030.017	-	421.471	+	208.308	))
=	2736.4

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

Jinzhou Portco Co (SHSE:900952) 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, Jinzhou Portco Co's WACC % is 6.92%. Jinzhou Portco Co's ROC % is 1.94% (calculated using TTM income statement data). Jinzhou Portco 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.

Jinzhou Portco Co ROC % Related Terms

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Jinzhou Portco Co (SHSE:900952) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Jinzhou Portco Co Ltd (SHSE:900952) » Definitions » ROC %

Traded in Other Exchanges

600190:China

Address

No.1, Section 1, Jingang Street, Economic and Technological Development Zone, Liaoning Province, Jinzhou, CHN, 121007

Website

http://www.jinzhouport.com

Jinzhou Portco Co Ltd in China operates a port hub mainly for oil and chemical transportation, container transportation, and cargo transportation. It holds around 24 berths, including 250,000 tons of oil berths, 100,000 tons of bulk cargo berths and 100,000 tons of container-specific berths. Oil, grain, mineral powder, coal, steel, fertilizer and domestic trade containers are the main sources of supply for the company. It serves china's north and south and holds a navigation relationship with more than 100 countries and regions such as Asia, Europe, Oceania, America, and Africa.

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