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Maike Tube Industry Holdings (HKSE:01553) ROIC % : 12.88% (As of Jun. 2024)


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What is Maike Tube Industry Holdings 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 %. Maike Tube Industry Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 12.88%.

As of today (2024-12-14), Maike Tube Industry Holdings's WACC % is 9.48%. Maike Tube Industry Holdings's ROIC % is 14.16% (calculated using TTM income statement data). Maike Tube Industry Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Maike Tube Industry Holdings ROIC % Historical Data

The historical data trend for Maike Tube Industry Holdings'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.

* Premium members only.

Maike Tube Industry Holdings ROIC % Chart

Maike Tube Industry Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 14.76 16.38 14.64 13.18 14.71

Maike Tube Industry Holdings Semi-Annual Data
Dec16 Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.05 13.74 13.53 15.66 12.88

Competitive Comparison of Maike Tube Industry Holdings's ROIC %

For the Steel subindustry, Maike Tube Industry Holdings'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.


Maike Tube Industry Holdings's ROIC % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Maike Tube Industry Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Maike Tube Industry Holdings's ROIC % falls into.



Maike Tube Industry Holdings ROIC % Calculation

Maike Tube Industry Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=203.222 * ( 1 - 11.81% )/( (1203.135 + 1234.366)/ 2 )
=179.2214818/1218.7505
=14.71 %

where

Invested Capital(A: Dec. 2022 )
=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))
=1432.134 - 164.498 - ( 64.501 - max(0, 349.576 - 953.888+64.501))
=1203.135

Invested Capital(A: Dec. 2023 )
=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))
=1854.284 - 521.012 - ( 98.906 - max(0, 673.635 - 1399.426+98.906))
=1234.366

Maike Tube Industry Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=189.226 * ( 1 - 13.89% )/( (1234.366 + 1295.911)/ 2 )
=162.9425086/1265.1385
=12.88 %

where

Invested Capital(Q: Dec. 2023 )
=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))
=1854.284 - 521.012 - ( 98.906 - max(0, 673.635 - 1399.426+98.906))
=1234.366

Invested Capital(Q: Jun. 2024 )
=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))
=1971.588 - 578.552 - ( 97.125 - max(0, 783.676 - 1486.015+97.125))
=1295.911

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.


Maike Tube Industry Holdings  (HKSE:01553) 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, Maike Tube Industry Holdings's WACC % is 9.48%. Maike Tube Industry Holdings's ROIC % is 14.16% (calculated using TTM income statement data). Maike Tube Industry Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Maike Tube Industry Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


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.


Maike Tube Industry Holdings ROIC % Related Terms

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Maike Tube Industry Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 4 Meide Street, Meigui Zone of Industrial Park, Pingyin County, Shandong Province, Jinan, CHN, 250400
Maike Tube Industry Holdings Ltd is an investment holding company. The company, through its subsidiaries, is engaged in the manufacturing of steel pipe products and prefabricated pipe nipple products. Its steel pipe products are made through rolling steel plates and welding the seam and are mainly used for gas, water supply, HVAC, and fire extinguishing. The group offers ERW steel pipes, Standard prefabricated pipe nipples, Spiral Submerged Arc Welded steel pipes, Customised steel pipes, and Design and supply assembled piping systems. It has a business presence in the PRC, the US, Europe, and Other countries of which a majority of revenue is generated from the PRC.
Executives
Zhang Jing Ru 2202 Interest of your spouse
Zhao Pu 2101 Beneficial owner
Kong Linglei 2201 Interest of corporation controlled by you
Ying Stone Holdings Limited 2101 Beneficial owner
Tong Chuang Sheng De Limited 2101 Beneficial owner
Tong Chuang Xing De Limited 2101 Beneficial owner
Shang Hai Heng Yuan Guo Ji Tou Zi You Xian Gong Si 2101 Beneficial owner

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