New Trend International Logis-tech Co (SZSE:300532) ROC % : 4.85% (As of Sep. 2024)

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What is New Trend International Logis-tech 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 %. New Trend International Logis-tech Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.85%.

As of today (2025-04-06), New Trend International Logis-tech Co's WACC % is 7.36%. New Trend International Logis-tech Co's ROC % is 15.59% (calculated using TTM income statement data). New Trend International Logis-tech Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

New Trend International Logis-tech Co ROC % Historical Data

The historical data trend for New Trend International Logis-tech 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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New Trend International Logis-tech Co ROC % Chart

New Trend International Logis-tech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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6.36

11.14

9.48

14.32

18.23

New Trend International Logis-tech 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															17.06	13.18	17.64	27.24	4.85

New Trend International Logis-tech Co ROC % Calculation

New Trend International Logis-tech 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 )
=	476.125 * ( 1 - 10.12% )	/	( (2465.583	+	2228.371)	/ 2 )
=	427.94115	/	2346.977
=	18.23 %

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	))
=	4668.966	-	1343.766	-	( 859.617	-	max(0, 3196.48	-	4294.93	+	859.617	))
=	2465.583

	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	))
=	5129.997	-	1591.957	-	( 1309.669	-	max(0, 3398.58	-	4774.971	+	1309.669	))
=	2228.371

New Trend International Logis-tech 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 )
=	109.672 * ( 1 - 0.28% )	/	( (2185.57	+	2321.754)	/ 2 )
=	109.3649184	/	2253.662
=	4.85 %

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	))
=	4559.248	-	1206.846	-	( 1166.832	-	max(0, 2673.543	-	4224.961	+	1166.832	))
=	2185.57

	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	))
=	4464.483	-	1298.674	-	( 844.055	-	max(0, 2710.899	-	4136.658	+	844.055	))
=	2321.754

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

New Trend International Logis-tech Co (SZSE:300532) 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, New Trend International Logis-tech Co's WACC % is 7.36%. New Trend International Logis-tech Co's ROC % is 15.59% (calculated using TTM income statement data). New Trend International Logis-tech Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

New Trend International Logis-tech Co ROC % Related Terms

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New Trend International Logis-tech Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » New Trend International Logis-tech Co Ltd (SZSE:300532) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Cuibao Road, Baolong Street, Room 101, Jinri International Office Building, Baolong Community, Longgang District, Guangdong, Shenzhen, CHN, 518116

Website

https://www.nti56.com

New Trend International Logis-tech Co Ltd provides logistics system integration services. It provides warehousing, distribution and logistics automation systems and services. It offers logistics software, including warehouse control system, warehouse management system, data acquisition, and monitoring system, logistics management integration platform, transportation management system, and picking management system. It provides production planning, design, system integration, software development, equipment customization; and after-sales service, and a series of services. Its automatic logistics systems are mainly used in tobacco, cold chain, new energy vehicles, medicine, machinery manufacturing, airports, retail chains, e-commerce and food and beverage industries.

Executives

Liu Cheng Kai	Executives
Xia Bi Wu	Supervisors
Shao Jian Wei	Director
Liang Jian Ping	Executives
Zhang Xiao Qi	Directors, executives

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