RAYA (Erayak Power Solution Group) ROCE % : -8.13% (As of Jun. 2024)

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What is Erayak Power Solution Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Erayak Power Solution Group's annualized ROCE % for the quarter that ended in Jun. 2024 was -8.13%.

Erayak Power Solution Group ROCE % Historical Data

The historical data trend for Erayak Power Solution Group's ROCE % 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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Erayak Power Solution Group ROCE % Chart

Erayak Power Solution Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

48.30

78.22

50.25

28.32

9.14

Erayak Power Solution Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial					53.31	23.66	8.23	10.53	-8.13

Erayak Power Solution Group ROCE % Calculation

Erayak Power Solution Group's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1.903	/	( ( (37.605 - 18.044)	+	(35.285 - 13.212) )	/ 2 )
	=	1.903	/	( (19.561	+	22.073)	/ 2 )
	=	1.903	/	20.817
	=	9.14 %

Erayak Power Solution Group's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	-2.05	/	( ( (35.285 - 13.212)	+	(42.407 - 14.03) )	/ 2 )
	=	-2.05	/	( ( 22.073	+	28.377 )	/ 2 )
	=	-2.05	/	25.225
	=	-8.13 %

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

Erayak Power Solution Group (NAS:RAYA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Erayak Power Solution Group ROCE % Related Terms

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Erayak Power Solution Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Erayak Power Solution Group Inc (NAS:RAYA) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 528, 4th Avenue, Binhai Industrial Park, Zhejiang Province, Wenzhou, CHN, 325025

Website

https://www.erayakpower.com

Erayak Power Solution Group Inc engages in manufacturing, research and development, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery, and smart chargers, and custom-designed products. It derives the majority revenue from three products namely inverters, chargers, and gasoline generators. The company geographically operates in China, Australia, Poland, U.K., and Germany. It derives maximum revenue from China.