Shenzhen Inovance Technology Co (SZSE:300124) ROCE % : 11.45% (As of Mar. 2024)

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What is Shenzhen Inovance Technology Co 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. Shenzhen Inovance Technology Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.45%.

Shenzhen Inovance Technology Co ROCE % Historical Data

The historical data trend for Shenzhen Inovance Technology Co'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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Shenzhen Inovance Technology Co ROCE % Chart

Shenzhen Inovance Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.51

21.67

25.91

22.89

19.74

Shenzhen Inovance Technology Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															12.84	22.79	21.01	23.27	11.45

Shenzhen Inovance Technology Co ROCE % Calculation

Shenzhen Inovance Technology Co'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 )
	=	5178.629	/	( ( (39211.61 - 16059.295)	+	(48957.564 - 19643.829) )	/ 2 )
	=	5178.629	/	( (23152.315	+	29313.735)	/ 2 )
	=	5178.629	/	26233.025
	=	19.74 %

Shenzhen Inovance Technology Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	3421.664	/	( ( (48957.564 - 19643.829)	+	(50684.227 - 20229.503) )	/ 2 )
	=	3421.664	/	( ( 29313.735	+	30454.724 )	/ 2 )
	=	3421.664	/	29884.2295
	=	11.45 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Shenzhen Inovance Technology Co (SZSE:300124) 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.

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Shenzhen Inovance Technology Co (SZSE:300124) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Shenzhen Inovance Technology Co Ltd (SZSE:300124) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

Liuxian Road No. 70, Building E, Hongwei Industrial Park, Baocheng District, Shenzhen, CHN, 518101

Website

http://www.inovance.cn

Founded in 2003 by a group of ex-engineers from Huawei and Emerson, Shenzhen Inovance Technology develops and manufactures components used in elevators, automation equipment, robots, new energy vehicles, and railways. A partial list of products includes variable frequency drives--also known as inverters--servo systems, sensors, interfaces and motor controllers. Inovance employs about 20,000 staff, including over 4,700 research and development engineers. About 95% of Inovance's sales are made in China. Its headquarters are in Shenzhen with a large regional office in Suzhou, and these major offices are supported by over 10 branches across China.

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