Tsaker New Energy Tech Co (HKSE:01986) ROIC % : 2.52% (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

What is Tsaker New Energy 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 %. Tsaker New Energy Tech Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.52%.

As of today (2024-05-21), Tsaker New Energy Tech Co's WACC % is 8.65%. Tsaker New Energy Tech Co's ROIC % is 4.14% (calculated using TTM income statement data). Tsaker New Energy Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tsaker New Energy Tech Co ROIC % Historical Data

The historical data trend for Tsaker New Energy 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.

* Premium members only.

Tsaker New Energy Tech Co ROIC % Chart

Tsaker New Energy Tech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

28.47

9.66

13.33

13.23

4.10

Tsaker New Energy Tech Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															17.74	9.55	17.71	4.25	2.52

Competitive Comparison of Tsaker New Energy Tech Co's ROIC %

For the Specialty Chemicals subindustry, Tsaker New Energy 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.

Tsaker New Energy Tech Co's ROIC % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Tsaker New Energy Tech Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Tsaker New Energy Tech Co's ROIC % falls into.

Tsaker New Energy Tech Co ROIC % Calculation

Tsaker New Energy Tech Co'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 )
=	140.975 * ( 1 - 24.17% )	/	( (2578.827	+	2637.773)	/ 2 )
=	106.9013425	/	2608.3
=	4.10 %

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	))
=	3568.17	-	817.992	-	( 216.296	-	max(0, 1155.206	-	1326.557	+	216.296	))
=	2578.827

	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	))
=	3777.58	-	811.323	-	( 328.484	-	max(0, 1247.085	-	1605.147	+	328.484	))
=	2637.773

Tsaker New Energy Tech Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	143.33 * ( 1 - 54.45% )	/	( (2539.004	+	2637.773)	/ 2 )
=	65.286815	/	2588.3885
=	2.52 %

where

	Invested Capital		(Q: Jun. 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	))
=	3708.454	-	709.59	-	( 460.201	-	max(0, 1060.079	-	1519.939	+	460.201	))
=	2539.004

	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	))
=	3777.58	-	811.323	-	( 328.484	-	max(0, 1247.085	-	1605.147	+	328.484	))
=	2637.773

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Tsaker New Energy Tech Co (HKSE:01986) 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, Tsaker New Energy Tech Co's WACC % is 8.65%. Tsaker New Energy Tech Co's ROIC % is 4.14% (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.

Tsaker New Energy Tech Co ROIC % Related Terms

Thank you for viewing the detailed overview of Tsaker New Energy Tech Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Tsaker New Energy Tech Co (HKSE:01986) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Tsaker New Energy Tech Co Ltd (HKSE:01986) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yard 109, Jinghai 3rd Road, 1st Floor, Building 10, Beijing Economic-Technological Development Area, Beijing, CHN, 100020

Website

http://www.tsaker.com

Tsaker New Energy Tech Co Ltd formerly Tsaker Chemical Group Ltd is a manufacturer of dye intermediates, pigment intermediates, battery materials and agricultural chemical intermediates in China. Its operating segments include Dye and agricultural chemical intermediates, Pigment intermediates, Environmental technology consultancy services, and Battery materials. Geographically, it derives the majority of revenue from Mainland China and has a presence in India, Germany, the United States, Taiwan, Spain, Indonesia, Brazil, Italy, Japan, Korea, Turkey, and Other Countries.

Tsaker New Energy Tech Co (HKSE:01986) Headlines

No Headlines