Ocean's King Lighting Science & Technology Co (SZSE:002724) ROC % : 0.88% (As of Sep. 2024)

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What is Ocean's King Lighting Science & 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 %. Ocean's King Lighting Science & Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.88%.

As of today (2025-04-06), Ocean's King Lighting Science & Technology Co's WACC % is 12.59%. Ocean's King Lighting Science & Technology Co's ROC % is 4.25% (calculated using TTM income statement data). Ocean's King Lighting Science & Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ocean's King Lighting Science & Technology Co ROC % Historical Data

The historical data trend for Ocean's King Lighting Science & 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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Ocean's King Lighting Science & Technology Co ROC % Chart

Ocean's King Lighting Science & Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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25.08

23.51

21.50

4.74

2.65

Ocean's King Lighting Science & Technology Co 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															-2.80	5.02	1.45	21.09	0.88

Ocean's King Lighting Science & Technology Co ROC % Calculation

Ocean's King Lighting Science & 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 )
=	121.965 * ( 1 - 51.7% )	/	( (2268.345	+	2176.08)	/ 2 )
=	58.909095	/	2222.2125
=	2.65 %

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	))
=	3865.056	-	595.02	-	( 1001.691	-	max(0, 732.599	-	2661.99	+	1001.691	))
=	2268.345

	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	))
=	3914.336	-	631.03	-	( 1107.226	-	max(0, 783.833	-	2671.651	+	1107.226	))
=	2176.08

Ocean's King Lighting Science & 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 )
=	68.26 * ( 1 - 71.02% )	/	( (2255.729	+	2252.439)	/ 2 )
=	19.781748	/	2254.084
=	0.88 %

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	))
=	3670.335	-	489.079	-	( 925.527	-	max(0, 645.744	-	2382.878	+	925.527	))
=	2255.729

	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	))
=	3687.616	-	467.989	-	( 967.188	-	max(0, 631.58	-	2368.616	+	967.188	))
=	2252.439

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

Ocean's King Lighting Science & Technology Co (SZSE:002724) 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, Ocean's King Lighting Science & Technology Co's WACC % is 12.59%. Ocean's King Lighting Science & Technology Co's ROC % is 4.25% (calculated using TTM income statement data). Ocean's King Lighting Science & 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.

Ocean's King Lighting Science & Technology Co ROC % Related Terms

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Ocean's King Lighting Science & Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Ocean's King Lighting Science & Technology Co Ltd (SZSE:002724) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Gaoxin Road, Ocean's King Science & Technology Tower, No. 1601, Guangming New District, Shenzhen, CHN, 518107

Website

http://www.haiyangwang.com

Ocean's King Lighting Science & Technology Co Ltd is a China-based company providing lighting products. It is engaged in the research, development, manufacture, and supply of innovative and reliable indoor and outdoor lighting solutions. The firm is a supplier of lighting products to transportation, power generation, mining, oil and gas, and petrochemical industries. It offers lighting and control products including fixed explosion-proof lighting, fixed professional lighting, mobile professional lighting, portable explosion-proof lighting, portable professional lighting, detectors, controllers, and gateways. The firm also provides value-added services.

Executives

Huang Xiu Qian	Director
Chen Yan	Directors, executives
Li Cai Fen	Director
Yang Zhi Jie	Directors, executives
Li Fu Ning	Director
Ma Shao Yong	Director
Feng Yuan	Supervisors
Li Ping	Independent director
Chen Shao Feng	Director
Zhou Ming Jie	Directors, executives
Yan Li Rong	Supervisors
Chen Hui	Secretary Dong
Yi Nian Feng	Supervisors

Ocean's King Lighting Science & Technology Co Headlines

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