ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Shiyue Daotian Group Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 8.10%.
As of today (2025-04-07), Shiyue Daotian Group Co's WACC % is 9.09%. Shiyue Daotian Group Co's ROIC % is 10.09% (calculated using TTM income statement data).
Shiyue Daotian Group Co 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.
* 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 Shiyue Daotian Group Co's ROIC %
For the Packaged Foods subindustry, Shiyue Daotian Group 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.
Shiyue Daotian Group Co's ROIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Shiyue Daotian Group Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Shiyue Daotian Group Co'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.
Shiyue Daotian Group Co (HKSE:09676) 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, Shiyue Daotian Group Co's WACC % is 9.09%. Shiyue Daotian Group Co's ROIC % is 10.09% (calculated using TTM income statement data).
Shiyue Daotian Group Co 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.
Shiyue Daotian Group Co 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.
Shiyue Daotian Group Co ROIC % Related Terms
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Shiyue Daotian Group Co Ltd is a Chinese pantry staple food company that offers pre-packaged rice, whole grains, beans, and dried food products. It has a strong brand presence across multiple channels. The company has three main segments which includes Rice Products: in this division makes different types of packaged rice. Whole Grain, Bean, and Other Products in this here they produce packaged mixes of brown rice, millet, red beans, sesame, and more. Dried Food and Other Products in this segment handles packaged dried mushrooms, lotus seeds, and related by-products such as bran and husk.
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