Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) ROC % : 2.65% (As of Sep. 2024)

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What is Jiangsu Wuyang Automation Control 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 %. Jiangsu Wuyang Automation Control Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 2.65%.

As of today (2024-12-15), Jiangsu Wuyang Automation Control Technology Co's WACC % is 10.86%. Jiangsu Wuyang Automation Control Technology Co's ROC % is 1.63% (calculated using TTM income statement data). Jiangsu Wuyang Automation Control Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jiangsu Wuyang Automation Control Technology Co ROC % Historical Data

The historical data trend for Jiangsu Wuyang Automation Control 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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Jiangsu Wuyang Automation Control Technology Co ROC % Chart

Jiangsu Wuyang Automation Control Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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10.64

10.17

-1.59

4.24

7.49

Jiangsu Wuyang Automation Control 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															7.30	22.38	0.91	0.43	2.65

Jiangsu Wuyang Automation Control Technology Co ROC % Calculation

Jiangsu Wuyang Automation Control 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 )
=	156.055 * ( 1 - -13.83% )	/	( (2468.671	+	2276.787)	/ 2 )
=	177.6374065	/	2372.729
=	7.49 %

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	))
=	3565.059	-	526.378	-	( 570.01	-	max(0, 919.76	-	2291.084	+	570.01	))
=	2468.671

	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	))
=	3535.722	-	471.731	-	( 787.204	-	max(0, 870.762	-	2267.6	+	787.204	))
=	2276.787

Jiangsu Wuyang Automation Control 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 )
=	119.676 * ( 1 - 50.49% )	/	( (2251.131	+	2214.321)	/ 2 )
=	59.2515876	/	2232.726
=	2.65 %

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	))
=	3340.846	-	409.577	-	( 680.138	-	max(0, 728.767	-	2089.132	+	680.138	))
=	2251.131

	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	))
=	3304.717	-	420.742	-	( 669.654	-	max(0, 708.106	-	2043.402	+	669.654	))
=	2214.321

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

Jiangsu Wuyang Automation Control Technology Co (SZSE:300420) 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, Jiangsu Wuyang Automation Control Technology Co's WACC % is 10.86%. Jiangsu Wuyang Automation Control Technology Co's ROC % is 1.63% (calculated using TTM income statement data). Jiangsu Wuyang Automation Control 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.

Jiangsu Wuyang Automation Control Technology Co ROC % Related Terms

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Jiangsu Wuyang Automation Control Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Jiangsu Wuyang Automation Control Technology Co Ltd (SZSE:300420) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

North of Zhujiang Road and east of Yinshan Road, Industrial Park, Tongshan New District, Jiangsu Province, Xuzhou, CHN, 221116

Website

http://www.wuyangkeji.com

Jiangsu Wuyang Automation Control Technology Co Ltd is a conglomerate. Its main business covers six major sectors: smart garages, automated production lines, three-dimensional warehousing, mine safety equipment, unmanned ships, and financial services. It services includes Tensioning device, braking device, feeder and two stations and machine-made sand, industrial robot complete production line, intelligent mechanical parking equipment, logistics and intelligent warehousing system, parking lot investment, construction and operation.

Executives

Zhang Bao Gang	Supervisors
Hou You Fu	Director
Zhang Ye	Supervisors
Hu Yun Gao	Directors, executives
Cai Min	Director
Sun Jin Ming	Directors, executives
Liu Long Bao	Director
Tong Min	Director
Zhang Li Yong	Directors, executives
Wang Chong Gui	Independent director
Du Jin Feng	Director

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