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 Shanshui Cement Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -0.20%.
As of today (2024-12-14), China Shanshui Cement Group's WACC % is 3.66%. China Shanshui Cement Group's ROIC % is -1.16% (calculated using TTM income statement data).
China Shanshui Cement Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Shanshui Cement Group ROIC % Historical Data
* 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.
Competitive Comparison of China Shanshui Cement Group's ROIC %
For the Building Materials subindustry, China Shanshui Cement Group'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 Shanshui Cement Group's ROIC % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, China Shanshui Cement Group's ROIC % distribution charts can be found below:
* The bar in red indicates where China Shanshui Cement Group's ROIC % falls into.
China Shanshui Cement Group ROIC % Calculation
China Shanshui Cement Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Jun. 2024) data.
* 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.
China Shanshui Cement Group (HKSE:00691) 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 Shanshui Cement Group's WACC % is 3.66%. China Shanshui Cement Group's ROIC % is -1.16% (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 Shanshui Cement Group ROIC % Related Terms
Thank you for viewing the detailed overview of China Shanshui Cement Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
China Shanshui Cement Group Ltd is a cement producer in China. The company manufactures and sells cement, clinker, and concrete in several provinces of China. Its geographic segments include Shandong Province which contributes to the majority of revenue and several other provinces of China that include Northeastern China, Shanxi Province, and Xinjiang Region. Its products are used for national key projects, railways, highways, airports, real estate, and other infrastructure construction and are exported to more than 60 countries and other international markets.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00691 has been successfully added to your 