Fullink Technology Co (SZSE:301067) ROC % : 4.81% (As of Sep. 2024)

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What is Fullink 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 %. Fullink Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.81%.

As of today (2025-03-04), Fullink Technology Co's WACC % is 4.40%. Fullink Technology Co's ROC % is 1.88% (calculated using TTM income statement data). Fullink Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fullink Technology Co ROC % Historical Data

The historical data trend for Fullink 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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Fullink Technology Co ROC % Chart

Fullink Technology Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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341.55

50.44

21.84

13.61

3.71

Fullink 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															2.77	6.29	-0.01	-2.39	4.81

Fullink Technology Co ROC % Calculation

Fullink 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 )
=	28.112 * ( 1 - -2.08% )	/	( (641.408	+	904.132)	/ 2 )
=	28.6967296	/	772.77
=	3.71 %

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	))
=	1084.379	-	169.83	-	( 273.141	-	max(0, 218.592	-	598.993	+	273.141	))
=	641.408

	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	))
=	1234.472	-	229.037	-	( 101.303	-	max(0, 310.043	-	514.506	+	101.303	))
=	904.132

Fullink 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 )
=	48.456 * ( 1 - 9.57% )	/	( (890.552	+	929.558)	/ 2 )
=	43.8187608	/	910.055
=	4.81 %

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	))
=	1268.838	-	245.177	-	( 133.109	-	max(0, 370.714	-	560.67	+	133.109	))
=	890.552

	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	))
=	1301.322	-	274.684	-	( 97.08	-	max(0, 397.016	-	580.071	+	97.08	))
=	929.558

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

Fullink Technology Co (SZSE:301067) 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, Fullink Technology Co's WACC % is 4.40%. Fullink Technology Co's ROC % is 1.88% (calculated using TTM income statement data). Fullink 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.

Fullink Technology Co ROC % Related Terms

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Fullink Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Fullink Technology Co Ltd (SZSE:301067) » Definitions » ROC %

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Address

West of Honghu East Road, Yanluo Street, Building 101, Building 7, Jiada Industrial Park, Yanchuan Community, Baoan District, Guangdong Province, Shenzhen, CHN, 518105

Website

http://www.hkfullink.com

Fullink Technology Co Ltd is a mobile terminal intelligent distribution company specializing in signal converters, signal expansion docks, power adapters, smart chargers, etc. The company's products are mainly divided into signal conversion and expansion products (Type-C, DP, HDMI, DVI, and VGA, etc.), molds and precision structural parts products (plastic shells, aluminum shells and precision structural parts), power adapters (fast charging chargers, wireless chargers, travel chargers, etc.), and other products such as high-speed cables and VR/AR peripherals, ergonomic bracket series products, magic keyboard, and smart socket, etc.

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