Shinelong Automotive Lightweight Application (HKSE:01930) ROIC % : 1.91% (As of Jun. 2024)

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What is Shinelong Automotive Lightweight Application 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 %. Shinelong Automotive Lightweight Application's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 1.91%.

As of today (2025-03-27), Shinelong Automotive Lightweight Application's WACC % is 4.89%. Shinelong Automotive Lightweight Application's ROIC % is 2.45% (calculated using TTM income statement data). Shinelong Automotive Lightweight Application earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shinelong Automotive Lightweight Application ROIC % Historical Data

The historical data trend for Shinelong Automotive Lightweight Application'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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Shinelong Automotive Lightweight Application ROIC % Chart

Shinelong Automotive Lightweight Application Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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9.70

9.50

4.58

4.50

4.40

Shinelong Automotive Lightweight Application Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial										3.81	5.63	5.83	3.03	1.91

Competitive Comparison of Shinelong Automotive Lightweight Application's ROIC %

For the Auto Parts subindustry, Shinelong Automotive Lightweight Application'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.

Shinelong Automotive Lightweight Application's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Shinelong Automotive Lightweight Application's ROIC % distribution charts can be found below:

* The bar in red indicates where Shinelong Automotive Lightweight Application's ROIC % falls into.

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Shinelong Automotive Lightweight Application ROIC % Calculation

Shinelong Automotive Lightweight Application'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 )
=	25.861 * ( 1 - 14.19% )	/	( (475.953	+	532.174)	/ 2 )
=	22.1913241	/	504.0635
=	4.40 %

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	))
=	632.953	-	98.598	-	( 58.402	-	max(0, 259.584	-	465.869	+	58.402	))
=	475.953

	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	))
=	677.118	-	101.101	-	( 43.843	-	max(0, 284.34	-	457.05	+	43.843	))
=	532.174

Shinelong Automotive Lightweight Application'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 )
=	12.028 * ( 1 - 15.28% )	/	( (532.174	+	532.308)	/ 2 )
=	10.1901216	/	532.241
=	1.91 %

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	))
=	677.118	-	101.101	-	( 43.843	-	max(0, 284.34	-	457.05	+	43.843	))
=	532.174

	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	))
=	693.945	-	127.759	-	( 33.878	-	max(0, 299.895	-	472.618	+	33.878	))
=	532.308

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Shinelong Automotive Lightweight Application (HKSE:01930) 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, Shinelong Automotive Lightweight Application's WACC % is 4.89%. Shinelong Automotive Lightweight Application's ROIC % is 2.45% (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.

Shinelong Automotive Lightweight Application ROIC % Related Terms

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Shinelong Automotive Lightweight Application Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Shinelong Automotive Lightweight Application Ltd (HKSE:01930) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

90 Yangongdai Lane, Zhangpu Town, Jiangsu Province, Kunshan, CHN

Website

http://www.shinlone.com.cn

Shinelong Automotive Lightweight Application Ltd is engaged in the design, development, manufacture, and sales of customized hot-pressing moulds, hydroforming moulds and injection moulds that are used in auto manufacturing. Apart from automotive moulds, the group also engages in the design, development, manufacture, and sales of customized plastic moulds for the production of electrical appliances and health-protective appliances. The company also offers parts processing services. Geographically, it generates maximum revenue from the PRC.

Executives

Lin Wan-yi	2101 Beneficial owner
Su Su-mei	2202 Interest of your spouse
Shine Art International Limited	2101 Beneficial owner
Friendly Holdings (hk) Co., Limited	2101 Beneficial owner
Hammurabi International Limited	2201 Interest of corporation controlled by you
Liu Fang Jung	2201 Interest of corporation controlled by you

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