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Yantai Dongcheng Biochemicals Co (SZSE:002675) ROC % : -14.43% (As of Dec. 2024)


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What is Yantai Dongcheng Biochemicals 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 %. Yantai Dongcheng Biochemicals Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -14.43%.

As of today (2025-03-28), Yantai Dongcheng Biochemicals Co's WACC % is 9.78%. Yantai Dongcheng Biochemicals Co's ROC % is 4.04% (calculated using TTM income statement data). Yantai Dongcheng Biochemicals Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Yantai Dongcheng Biochemicals Co ROC % Historical Data

The historical data trend for Yantai Dongcheng Biochemicals 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.

* Premium members only.

Yantai Dongcheng Biochemicals Co ROC % Chart

Yantai Dongcheng Biochemicals Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.71 8.95 8.48 6.50 4.11

Yantai Dongcheng Biochemicals 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 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 7.25 2.79 5.84 3.75 -14.43

Yantai Dongcheng Biochemicals Co ROC % Calculation

Yantai Dongcheng Biochemicals 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 )
=411.99 * ( 1 - 35.45% )/( (6229.726 + 6715.723)/ 2 )
=265.939545/6472.7245
=4.11 %

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))
=8082.354 - 1326.668 - ( 664.533 - max(0, 1951.726 - 2477.686+664.533))
=6229.726

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))
=8634.678 - 1105.262 - ( 904.514 - max(0, 1753.956 - 2567.649+904.514))
=6715.723

Yantai Dongcheng Biochemicals 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 )
=442.268 * ( 1 - 318.59% )/( (6683.92 + 6715.723)/ 2 )
=-966.7536212/6699.8215
=-14.43 %

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))
=8643.91 - 1004.794 - ( 955.196 - max(0, 1662.584 - 2633.125+955.196))
=6683.92

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))
=8634.678 - 1105.262 - ( 904.514 - max(0, 1753.956 - 2567.649+904.514))
=6715.723

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


Yantai Dongcheng Biochemicals Co  (SZSE:002675) 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, Yantai Dongcheng Biochemicals Co's WACC % is 9.78%. Yantai Dongcheng Biochemicals Co's ROC % is 4.04% (calculated using TTM income statement data). Yantai Dongcheng Biochemicals 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.


Yantai Dongcheng Biochemicals Co ROC % Related Terms

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Yantai Dongcheng Biochemicals Co Business Description

Traded in Other Exchanges
N/A
Address
No. 7 ChangBaishan Road, Yan Tai Development Zone, ShanDong, CHN, 264006
Yantai Dongcheng Biochemicals Co Ltd is a biochemical analytical profile index (API) manufacturers in China. In addition, the company also focuses on the development of finished preparation which covers the therapeutic area of cardiovascular, oncology, orthopedics, and anti-infection. Its product offering includes heparin sodium, chondroitin sulfate, marine collagen, hyaluronic acid, glucosamine, heparinoids, and cytochrome C. The company's API products have been exported to more than fifty countries and regions, including the United States of America, Germany, Austria, and Japan.
Executives
Xin Hong Bo Directors, executives
Luo Zhi Gang Executives
You Shou Yi Directors, executives
Lv Chun Xiang Supervisors
Sun Hong Tao Supervisors
Yi Qiong Executives
Yang Zhen Qiu Executives
Bai Xing Hua Directors, executives
Song Zhao Long Supervisors
Wen Lei Director
Zhu Chun Ping Executives
Qi Dong Qi Directors, executives
Liu Xiao Jie Securities Affairs Representative
Wang En Zheng Independent director
Shi Tao Supervisors

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