XYIGY (Xinyi Glass Holdings) ROC % : 8.81% (As of Jun. 2024)

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What is Xinyi Glass Holdings 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 %. Xinyi Glass Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 8.81%.

As of today (2024-12-15), Xinyi Glass Holdings's WACC % is 11.63%. Xinyi Glass Holdings's ROC % is 11.15% (calculated using TTM income statement data). Xinyi Glass Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xinyi Glass Holdings ROC % Historical Data

The historical data trend for Xinyi Glass Holdings'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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Xinyi Glass Holdings ROC % Chart

Xinyi Glass Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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11.30

13.93

26.29

9.39

10.46

Xinyi Glass Holdings Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															11.77	7.16	7.20	13.55	8.81

Xinyi Glass Holdings ROC % Calculation

Xinyi Glass Holdings'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 )
=	703.05 * ( 1 - 15.22% )	/	( (5876.701	+	5515.78)	/ 2 )
=	596.04579	/	5696.2405
=	10.46 %

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	))
=	6708.941	-	701.744	-	( 502.778	-	max(0, 1528.854	-	1659.35	+	502.778	))
=	5876.701

	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	))
=	6506.366	-	700.763	-	( 305.991	-	max(0, 1453.109	-	1742.932	+	305.991	))
=	5515.78

Xinyi Glass Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	577.5 * ( 1 - 15.73% )	/	( (5515.78	+	5536.362)	/ 2 )
=	486.65925	/	5526.071
=	8.81 %

where

	Invested Capital		(Q: 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	))
=	6506.366	-	700.763	-	( 305.991	-	max(0, 1453.109	-	1742.932	+	305.991	))
=	5515.78

	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	))
=	6540.139	-	882.054	-	( 176.822	-	max(0, 1612.949	-	1734.672	+	176.822	))
=	5536.362

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Xinyi Glass Holdings (OTCPK:XYIGY) 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, Xinyi Glass Holdings's WACC % is 11.63%. Xinyi Glass Holdings's ROC % is 11.15% (calculated using TTM income statement data). Xinyi Glass Holdings 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.

Xinyi Glass Holdings ROC % Related Terms

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Xinyi Glass Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Xinyi Glass Holdings Ltd (OTCPK:XYIGY) » Definitions » ROC %

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Traded in Other Exchanges

XYIGF:USA 00868:Hong Kong XI9:Germany

Address

135 Hoi Bun Road, Unit 2101-2108, 21st Floor, Rykadan Capital Tower, Kwun Tong, Kowloon, Hong Kong, HKG

Website

https://www.xinyiglass.com

Xinyi Glass Holdings Ltd is engaged in the production and sales of float glass products, automobile glass products, construction glass products and a variety of related products in the PRC and Malaysia. It produces and sells range of glass products, including automobile glass, energy-saving architectural glass, high-quality float glass and other glass products for different commercial and industrial applications. Its glass products are sold to customers in over 140 countries and territories, including the PRC, Hong Kong, the United States, Canada, Australia, New Zealand and countries in Asia, the Middle East, Europe, Africa, and America. Its segments include float glass; automobile glass; and architectural glass out of which the float glass segment accounts for the majority of revenue.

Xinyi Glass Holdings Headlines

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