Gospell Digital Technology Co (SZSE:002848) ROC % : -25.49% (As of Sep. 2024)

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What is Gospell Digital 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 %. Gospell Digital Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -25.49%.

As of today (2025-04-02), Gospell Digital Technology Co's WACC % is 14.46%. Gospell Digital Technology Co's ROC % is -29.76% (calculated using TTM income statement data). Gospell Digital Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gospell Digital Technology Co ROC % Historical Data

The historical data trend for Gospell Digital 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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Gospell Digital Technology Co ROC % Chart

Gospell Digital Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.88

-24.88

-22.93

-19.52

-18.30

Gospell Digital 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															-24.70	-40.93	-23.63	-28.49	-25.49

Gospell Digital Technology Co ROC % Calculation

Gospell Digital 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 )
=	-50.602 * ( 1 - -0.04% )	/	( (332.024	+	221.347)	/ 2 )
=	-50.6222408	/	276.6855
=	-18.30 %

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	))
=	592.587	-	246.742	-	( 13.821	-	max(0, 357.815	-	388.63	+	13.821	))
=	332.024

	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	))
=	435.175	-	245.022	-	( 18.418	-	max(0, 285.347	-	254.153	+	18.418	))
=	221.347

Gospell Digital 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 )
=	-56.668 * ( 1 - 0% )	/	( (226.152	+	218.503)	/ 2 )
=	-56.668	/	222.3275
=	-25.49 %

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	))
=	387.665	-	171.302	-	( 2.053	-	max(0, 227.022	-	217.233	+	2.053	))
=	226.152

	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	))
=	358.433	-	180.571	-	( 1.085	-	max(0, 233.663	-	193.022	+	1.085	))
=	218.503

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

Gospell Digital Technology Co (SZSE:002848) 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, Gospell Digital Technology Co's WACC % is 14.46%. Gospell Digital Technology Co's ROC % is -29.76% (calculated using TTM income statement data). Gospell Digital 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.

Gospell Digital Technology Co ROC % Related Terms

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Gospell Digital Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Gospell Digital Technology Co Ltd (SZSE:002848) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Gossberg Industrial Park, Guanshandong Street, Suxian District, Hunan Province, Chenzhou, CHN, 423038

Website

http://www.gospell.com

Gospell Digital Technology Co Ltd researches, develops, produces, and sells of digital television hardware and software products. The company offers headend products, including encoders and transcoders, receivers and decoders, QAM and IPQAM products, and multiplexers and scramblers; software systems, such as conditional access systems, as well as operation and set-top boxes; and RF and IP/ASI multiviewers. It also provides DTT transmitters; satellite TVRO antennas. Further, it provides content protection, DTV+OTT, DTH and DTT turnkey, FTTx, and video distribution solutions; and technical support services.

Executives

You Zong Jie	Director
Hao Jian Qing	Executives
Ma Gang	Executives
Deng Wan Neng	Executives
Wei Hong Wen	Executives
Liu Chun Bao	Directors, executives
Ou Yang Jian Kang	Executives
Liu Wei	Director
Chen Xiao Wen	Director
Hu Li Qin	Executives
Wang Chun	Secretary, Director
Liu Bing Yu	Supervisors
Liu Tan Ai	Director
Chen Fan	Supervisors
Zhao Mu Lin	Executives

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