Googol Technology Co (SZSE:301510) ROC % : -0.11% (As of Sep. 2024)

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What is Googol 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 %. Googol Technology Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -0.11%.

As of today (2025-01-18), Googol Technology Co's WACC % is 10.75%. Googol Technology Co's ROC % is 5.34% (calculated using TTM income statement data). Googol Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Googol Technology Co ROC % Historical Data

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

Googol Technology Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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16.92

11.82

16.77

10.83

8.12

Googol Technology Co Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial												5.27	13.97	1.23	8.51	-0.11

Googol Technology Co ROC % Calculation

Googol 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 )
=	58.731 * ( 1 - 5.87% )	/	( (500.686	+	860.249)	/ 2 )
=	55.2834903	/	680.4675
=	8.12 %

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	))
=	845.375	-	59.959	-	( 284.73	-	max(0, 103.101	-	542.709	+	284.73	))
=	500.686

	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	))
=	1375.747	-	84.418	-	( 431.08	-	max(0, 112.436	-	1045.23	+	431.08	))
=	860.249

Googol 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 )
=	-1.252 * ( 1 - 9.49% )	/	( (947.612	+	1099.293)	/ 2 )
=	-1.1331852	/	1023.4525
=	-0.11 %

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	))
=	1481.448	-	98.359	-	( 435.477	-	max(0, 133.848	-	1136.962	+	435.477	))
=	947.612

	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	))
=	1510.412	-	84.766	-	( 326.353	-	max(0, 126.184	-	1137.109	+	326.353	))
=	1099.293

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

Googol Technology Co (SZSE:301510) 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, Googol Technology Co's WACC % is 10.75%. Googol Technology Co's ROC % is 5.34% (calculated using TTM income statement data). Googol 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.

Googol Technology Co ROC % Related Terms

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Googol Technology Co Business Description

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Address

Shenzhen-Hong Kong Industry-University-Research Base, Room W211, 2nd Floor, West Building, High-tech Zone, Nanshan, South District, Guangdong, Shenzhen, CHN, 518057

Website

http://www.googoltech.com.cn

Googol Technology Co Ltd a high-tech enterprise engaged in the research and development of manufacturing core technologies, is one of the comprehensive solution providers for fully interconnected intelligent manufacturing at home and abroad. Googol Technology focuses on the core technology research in the five directions of motion control, servo drive, multi-dimensional perception, industrial field network and industrial software. The operation and control technology and products of Googol Technology are widely used in industrial control fields such as microelectronics, robots, CNC machine tools, electronic processing, testing, printing, packaging and production automation.

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