Shanghai Bio-heart Biological Technology Co (HKSE:02185) ROIC % : -11.94% (As of Jun. 2024)

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What is Shanghai Bio-heart Biological Technology 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 %. Shanghai Bio-heart Biological Technology Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -11.94%.

As of today (2025-04-06), Shanghai Bio-heart Biological Technology Co's WACC % is 1.28%. Shanghai Bio-heart Biological Technology Co's ROIC % is -19.03% (calculated using TTM income statement data). Shanghai Bio-heart Biological Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shanghai Bio-heart Biological Technology Co ROIC % Historical Data

The historical data trend for Shanghai Bio-heart Biological Technology 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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Shanghai Bio-heart Biological Technology Co ROIC % Chart

Shanghai Bio-heart Biological Technology Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

-88.95

-182.81

-112.82

-52.40

-33.34

Shanghai Bio-heart Biological Technology Co Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial					-60.52	-53.04	-37.55	-26.81	-11.94

Competitive Comparison of Shanghai Bio-heart Biological Technology Co's ROIC %

For the Biotechnology subindustry, Shanghai Bio-heart Biological Technology 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.

Shanghai Bio-heart Biological Technology Co's ROIC % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Shanghai Bio-heart Biological Technology Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Shanghai Bio-heart Biological Technology Co's ROIC % falls into.

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Shanghai Bio-heart Biological Technology Co ROIC % Calculation

Shanghai Bio-heart Biological Technology 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 )
=	-179.025 * ( 1 - 0% )	/	( (584.823	+	489.209)	/ 2 )
=	-179.025	/	537.016
=	-33.34 %

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	))
=	1096.077	-	7.261	-	( 503.993	-	max(0, 32.213	-	604.732	+	503.993	))
=	584.823

	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	))
=	894.601	-	1.309	-	( 404.083	-	max(0, 21.951	-	446.779	+	404.083	))
=	489.209

Shanghai Bio-heart Biological Technology Co'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 )
=	-61.956 * ( 1 - 0% )	/	( (489.209	+	548.631)	/ 2 )
=	-61.956	/	518.92
=	-11.94 %

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	))
=	894.601	-	1.309	-	( 404.083	-	max(0, 21.951	-	446.779	+	404.083	))
=	489.209

	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	))
=	843.811	-	1.391	-	( 293.789	-	max(0, 15.624	-	384.697	+	293.789	))
=	548.631

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

Shanghai Bio-heart Biological Technology Co (HKSE:02185) 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, Shanghai Bio-heart Biological Technology Co's WACC % is 1.28%. Shanghai Bio-heart Biological Technology Co's ROIC % is -19.03% (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.

Shanghai Bio-heart Biological Technology Co ROIC % Related Terms

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Shanghai Bio-heart Biological Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Shanghai Bio-heart Biological Technology Co Ltd (HKSE:02185) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.590 Ruiqing Road, Room 302, 3rd Floor, Building 4 & Building 6, East Zhangjiang Hi-Tech Park, Pudong New Area, Shanghai, CHN

Website

http://www.bio-heart.com

Shanghai Bio-heart Biological Technology Co Ltd is engaged in the research and development of bioresorbable scaffold (BRS) products and the renal denervation (RDN) system. The company is a interventional cardiovascular device company in China, and locate in Shanghai Zhangjiang Hi-Tech Park Medical Device Industrial Park. Focused on two therapies, bioresorbable scaffolds (BRS) and renal denervation (RDN), addressing the unmet medical needs of Chinese patients for the treatment of coronary and peripheral artery diseases and uncontrolled hypertension.

Executives

Tpg Operating Group Ii, L.p.	2201 Interest of corporation controlled by you
Chen Hao	2201 Interest of corporation controlled by you
Zhu Linan	2201 Interest of corporation controlled by you
Wang Nengguang	2201 Interest of corporation controlled by you
Union Season Holdings Limited	2201 Interest of corporation controlled by you
Sk China Company Limited	2201 Interest of corporation controlled by you
Right Lane Limited	2201 Interest of corporation controlled by you
Proud Solar Limited	2201 Interest of corporation controlled by you
Magic Grace Limited	2101 Beneficial owner
Loft Success Investments Limited	2201 Interest of corporation controlled by you
Lc Healthcare Fund Ii, L.p.	2201 Interest of corporation controlled by you
Lc Healthcare Fund Ii Gp Limited	2201 Interest of corporation controlled by you
Lc Fund Gp Limited	2201 Interest of corporation controlled by you
Great Unity Fund I, L.p.	2201 Interest of corporation controlled by you
Lian Xiang Kong Gu Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you

Shanghai Bio-heart Biological Technology Co Headlines

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