CSGH (China Sun Group High-Tech Co) ROIC % : 27.81% (As of Feb. 2012)

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What is China Sun Group High-Tech Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. China Sun Group High-Tech Co's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2012 was 27.81%.

As of today (2024-09-21), China Sun Group High-Tech Co's WACC % is 0.00%. China Sun Group High-Tech Co's ROIC % is 0.00% (calculated using TTM income statement data). China Sun Group High-Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Sun Group High-Tech Co ROIC % Historical Data

The historical data trend for China Sun Group High-Tech Co's ROIC % 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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China Sun Group High-Tech Co ROIC % Chart

China Sun Group High-Tech Co Annual Data

Trend

May06

May07

May08

May09

May10

May11

ROIC %

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3.47

38.04

39.71

37.47

30.53

China Sun Group High-Tech Co Quarterly Data
	May07	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12
ROIC %	Get a 7-Day Free Trial															40.80	33.45	30.09	26.65	27.81

Competitive Comparison of China Sun Group High-Tech Co's ROIC %

For the Electronic Components subindustry, China Sun Group High-Tech Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

China Sun Group High-Tech Co's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, China Sun Group High-Tech Co's ROIC % distribution charts can be found below:

* The bar in red indicates where China Sun Group High-Tech Co's ROIC % falls into.

China Sun Group High-Tech Co ROIC % Calculation

China Sun Group High-Tech Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2011 is calculated as:

	ROIC % (A: May. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2010 )	+	Invested Capital (A: May. 2011 ))	/ count )
=	11.936 * ( 1 - 30.11% )	/	( (23.043	+	31.603)	/ 2 )
=	8.3420704	/	27.323
=	30.53 %

where

	Invested Capital		(A: May. 2010 )
=	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	))
=	45.075	-	4.6	-	( 18.017	-	max(0, 4.6	-	22.032	+	18.017	))
=	23.043

	Invested Capital		(A: May. 2011 )
=	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	))
=	55.113	-	1.7	-	( 21.81	-	max(0, 1.7	-	24.887	+	21.81	))
=	31.603

China Sun Group High-Tech Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2012 is calculated as:

	ROIC % (Q: Feb. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2011 )	+	Invested Capital (Q: Feb. 2012 ))	/ count )
=	13.192 * ( 1 - 26.21% )	/	( (35.345	+	34.669)	/ 2 )
=	9.7343768	/	35.007
=	27.81 %

where

	Invested Capital		(Q: Nov. 2011 )
=	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	))
=	61.742	-	2.471	-	( 23.926	-	max(0, 2.471	-	29.532	+	23.926	))
=	35.345

	Invested Capital		(Q: Feb. 2012 )
=	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	))
=	65.203	-	2.738	-	( 27.796	-	max(0, 2.738	-	33.192	+	27.796	))
=	34.669

Note: The Operating Income data used here is four times the quarterly (Feb. 2012) data.

China Sun Group High-Tech Co (OTCPK:CSGH) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, China Sun Group High-Tech Co's WACC % is 0.00%. China Sun Group High-Tech Co's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

China Sun Group High-Tech Co ROIC % Related Terms

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China Sun Group High-Tech Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » China Sun Group High-Tech Co (OTCPK:CSGH) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Hutan Street, Zhongshan District, Dalian, Liaoning, CHN, 116015

Website

http://www.china-sun.cn

China Sun Group High-Tech Co through its operating subsidiaries, mainly engages in the production and sales of cobaltosic oxide and lithium cobalt oxide, both anode materials used in lithium ion rechargeable batteries in the PRC.

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