ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Yunhong Guixin Group Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 0.00%.
As of today (2025-04-01), Yunhong Guixin Group Holdings's WACC % is 4.83%. Yunhong Guixin Group Holdings's ROIC % is -3.30% (calculated using TTM income statement data).
Yunhong Guixin Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Yunhong Guixin Group Holdings 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 Yunhong Guixin Group Holdings's ROIC %
For the Building Products & Equipment subindustry, Yunhong Guixin Group 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.
Yunhong Guixin Group Holdings's ROIC % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Yunhong Guixin Group Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Yunhong Guixin Group Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Yunhong Guixin Group Holdings (HKSE:08349) 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, Yunhong Guixin Group Holdings's WACC % is 4.83%. Yunhong Guixin Group Holdings's ROIC % is -3.30% (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.
Yunhong Guixin Group Holdings ROIC % Related Terms
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Yunhong Guixin Group Holdings Business Description
Yunhong Guixin Group Holdings Ltd is a manufacturer in the PRC engaged in the research and development, production, and sale of a variety of fiberglass reinforced plastic grating products. Its products consist of FRP grating products; phenolic grating products; and epoxy wedge strip products. The company operates into two segments: fiberglass business that involves research and development, production and sales of fiberglass reinforced plastic products in the PRC; and silica sand business consists sales of industrial silica sand materials in the PRC. Its products are widely applied in industries including petrochemical, electrical, marine engineering, plating, vessel, metallurgy, steel, papermaking, brewing, and municipal industry and are mainly used in the operating platform, and others.
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