ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dekon Food and Agriculture Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 22.21%.
As of today (2025-03-30), Dekon Food and Agriculture Group's WACC % is 8.10%. Dekon Food and Agriculture Group's ROIC % is 24.19% (calculated using TTM income statement data).
Dekon Food and Agriculture Group 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.
Dekon Food and Agriculture 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 Dekon Food and Agriculture Group's ROIC %
For the Farm Products subindustry, Dekon Food and Agriculture 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.
Dekon Food and Agriculture Group's ROIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Dekon Food and Agriculture Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Dekon Food and Agriculture Group's ROIC % falls into.
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.
Dekon Food and Agriculture Group (HKSE:02419) 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, Dekon Food and Agriculture Group's WACC % is 8.10%. Dekon Food and Agriculture Group's ROIC % is 24.19% (calculated using TTM income statement data).
Dekon Food and Agriculture Group 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.
Dekon Food and Agriculture Group 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.
Dekon Food and Agriculture Group ROIC % Related Terms
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Dekon Food and Agriculture Group Business Description
Dekon Food and Agriculture Group is engaged in livestock and poultry breeding and farming enterprise in China. It is focusing on the breeding and farming of pigs and yellow-feathered broilers and has business in 39 cities across 13 provinces and autonomous regions in China. The company has three segments, namely pig, poultry, and ancillary products, which mainly include feed ingredients. The pig segment includes market hogs, breeding pigs, market piglets and boar semen, the Poultry segment includes yellow-feathered broilers and chicks hogs, breeding pigs, market piglets and boar semen and the ancillary segment includes sales of ingredients and others. The majority of the revenue is generated from the Pig segment.
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