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Anhui Sentai WPC Group Share Co (SZSE:301429) ROC % : 3.56% (As of Sep. 2024)


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What is Anhui Sentai WPC Group Share 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 %. Anhui Sentai WPC Group Share Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 3.56%.

As of today (2024-12-15), Anhui Sentai WPC Group Share Co's WACC % is 10.08%. Anhui Sentai WPC Group Share Co's ROC % is 6.97% (calculated using TTM income statement data). Anhui Sentai WPC Group Share Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Anhui Sentai WPC Group Share Co ROC % Historical Data

The historical data trend for Anhui Sentai WPC Group Share 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.

* Premium members only.

Anhui Sentai WPC Group Share Co ROC % Chart

Anhui Sentai WPC Group Share Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 18.86 32.67 30.06 20.63 8.56

Anhui Sentai WPC Group Share Co Quarterly Data
Dec17 Dec18 Dec19 Jun20 Dec20 Mar21 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.16 14.39 8.38 4.75 3.56

Anhui Sentai WPC Group Share Co ROC % Calculation

Anhui Sentai WPC Group Share 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 )
=49.468 * ( 1 - 9.63% )/( (430.293 + 613.712)/ 2 )
=44.7042316/522.0025
=8.56 %

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))
=736.156 - 128.227 - ( 177.636 - max(0, 140.373 - 421.657+177.636))
=430.293

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))
=1510.449 - 129.325 - ( 767.412 - max(0, 142.12 - 1057.537+767.412))
=613.712

Anhui Sentai WPC Group Share 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 )
=39.412 * ( 1 - 22.3% )/( (822.452 + 899.555)/ 2 )
=30.623124/861.0035
=3.56 %

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))
=1579.567 - 186.133 - ( 570.982 - max(0, 257.566 - 982.395+570.982))
=822.452

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))
=1590.953 - 205.886 - ( 485.512 - max(0, 268.125 - 958.15+485.512))
=899.555

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

* 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.


Anhui Sentai WPC Group Share Co  (SZSE:301429) 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, Anhui Sentai WPC Group Share Co's WACC % is 10.08%. Anhui Sentai WPC Group Share Co's ROC % is 6.97% (calculated using TTM income statement data). Anhui Sentai WPC Group Share 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.


Anhui Sentai WPC Group Share Co ROC % Related Terms

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Anhui Sentai WPC Group Share Co Business Description

Traded in Other Exchanges
N/A
Address
Guohua Road, Guangde Economic Development Zone, Anhui Province, Xuancheng, CHN, 242200
Anhui Sentai WPC Group Share Co Ltd is focused on the research and development and promotion of wood-plastic composite materials and their products. The company's products are mainly used in wood substitution, whole house assembly, prefabricated buildings, automotive interiors and other fields.

Anhui Sentai WPC Group Share Co Headlines

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