Shengkai Innovations (Shengkai Innovations) ROCE % : -4.22% (As of Mar. 2013)

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What is Shengkai Innovations 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. Shengkai Innovations's annualized ROCE % for the quarter that ended in Mar. 2013 was -4.22%.

Shengkai Innovations ROCE % Historical Data

The historical data trend for Shengkai Innovations'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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Shengkai Innovations ROCE % Chart

Shengkai Innovations Annual Data

Trend

Dec05

Dec06

Dec07

Jun08

Jun09

Jun10

Jun11

Jun12

ROCE %

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76.60

38.40

7.07

28.54

0.54

Shengkai Innovations Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
ROCE %	Get a 7-Day Free Trial															-0.80	-1.74	0.37	-5.16	-4.22

Shengkai Innovations ROCE % Calculation

Shengkai Innovations's annualized ROCE % for the fiscal year that ended in Jun. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2012 )		(A: Jun. 2011 )		(A: Jun. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2012 )		(A: Jun. 2011 )		(A: Jun. 2012 )
	=	0.732	/	( ( (141.453 - 9.611)	+	(143.597 - 3.523) )	/ 2 )
	=	0.732	/	( (131.842	+	140.074)	/ 2 )
	=	0.732	/	135.958
	=	0.54 %

Shengkai Innovations's ROCE % of for the quarter that ended in Mar. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2013 )		(Q: Dec. 2012 )		(Q: Mar. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2013 )		(Q: Dec. 2012 )		(Q: Mar. 2013 )
	=	-5.868	/	( ( (141.997 - 2.805)	+	(141.081 - 2.441) )	/ 2 )
	=	-5.868	/	( ( 139.192	+	138.64 )	/ 2 )
	=	-5.868	/	138.916
	=	-4.22 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2013) EBIT data.

Shengkai Innovations (OTCPK:VALV) 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.

Shengkai Innovations ROCE % Related Terms

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Shengkai Innovations (Shengkai Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Shengkai Innovations Inc (OTCPK:VALV) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.106, Zhonghuan South Road, Airport Industrial Park, Tianjin, CHN, 300308

Website

http://www.shengkaiinnovations.com

Shengkai Innovations Inc is a ceramic valve manufacturer with operations in the People's Republic of China.

Executives

Ming He	officer: Chief Financial Officer	NO. 106 ZHONGHUAN SOUTH ROAD, AIRPORT INDUSTRIAL PARK, TIANJIN F4 300308
Martin A. Sumichrast	10 percent owner	11125 COLONIAL COUNTRY LANE, CHARLOTTE NC 28277

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