ZST Digital Networks (ZST Digital Networks) ROCE % : 49.92% (As of Sep. 2011)

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What is ZST Digital Networks 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. ZST Digital Networks's annualized ROCE % for the quarter that ended in Sep. 2011 was 49.92%.

ZST Digital Networks ROCE % Historical Data

The historical data trend for ZST Digital Networks'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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ZST Digital Networks ROCE % Chart

ZST Digital Networks Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

ROCE %

55.68

214.44

149.80

51.42

50.10

ZST Digital Networks Quarterly Data
	Dec06	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
ROCE %	Get a 7-Day Free Trial												60.14	65.34	38.26	43.29	49.92

ZST Digital Networks ROCE % Calculation

ZST Digital Networks's annualized ROCE % for the fiscal year that ended in Dec. 2010 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2010 )		(A: Dec. 2009 )		(A: Dec. 2010 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2010 )		(A: Dec. 2009 )		(A: Dec. 2010 )
	=	29.964	/	( ( (50.128 - 2.348)	+	(77.1 - 5.264) )	/ 2 )
	=	29.964	/	( (47.78	+	71.836)	/ 2 )
	=	29.964	/	59.808
	=	50.10 %

ZST Digital Networks's ROCE % of for the quarter that ended in Sep. 2011 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2011 )		(Q: Jun. 2011 )		(Q: Sep. 2011 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2011 )		(Q: Jun. 2011 )		(Q: Sep. 2011 )
	=	44.8	/	( ( (93.266 - 8.241)	+	(105.585 - 11.115) )	/ 2 )
	=	44.8	/	( ( 85.025	+	94.47 )	/ 2 )
	=	44.8	/	89.7475
	=	49.92 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2011) EBIT data.

ZST Digital Networks (OTCPK:ZSTN) 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.

ZST Digital Networks ROCE % Related Terms

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ZST Digital Networks (ZST Digital Networks) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » ZST Digital Networks Inc (OTCPK:ZSTN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 206 Tongbai Road, ITC Kung Kuan, 3rd Floor, No.2 Building, Henan Province, Zhengzhou, CHN, 450007

Website

http://www.zstdigital.com

ZST Digital Networks Inc is a China-based Company, mainly engaged in supplying digital and optical network equipment and providing installation services to cable system operators in China. The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers. The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises.

Executives

Richard Rappaport	10 percent owner	1900 AVENUE OF THE STARS, SUITE 301, LOS ANGELES CA 90067
Debbie Schwartzberg	other: No longer a 10% owner	C/O SRKP 1, INC., 1900 AVENUE OF THE STARS, SUITE 310, LOS ANGELES CA 90067
Anthony C Pintsopoulos	other: No longer a 10% owner	1063 HILLSBORO MILE, SUITE 502, HILLSBORO BEACH FL 33062

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