ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. eGalax-eMIPIA Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 14.10%.
As of today (2025-04-06), eGalax-eMIPIA Technology's WACC % is 2.89%. eGalax-eMIPIA Technology's ROIC % is 16.55% (calculated using TTM income statement data).
eGalax-eMIPIA Technology 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 eGalax-eMIPIA Technology's ROIC %
For the Semiconductors subindustry, eGalax-eMIPIA Technology'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.
eGalax-eMIPIA Technology's ROIC % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, eGalax-eMIPIA Technology's ROIC % distribution charts can be found below:
* The bar in red indicates where eGalax-eMIPIA Technology's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 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.
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, eGalax-eMIPIA Technology's WACC % is 2.89%. eGalax-eMIPIA Technology's ROIC % is 16.55% (calculated using TTM income statement data).
eGalax-eMIPIA Technology 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.
eGalax-eMIPIA Technology 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.
eGalax-eMIPIA Technology ROIC % Related Terms
Thank you for viewing the detailed overview of eGalax-eMIPIA Technology's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
eGalax-eMIPIA Technology Inc provides touchscreen controller solutions in Taiwan. Its touchscreen solutions include projected capacitive, surface capacitive, resistive, and surface acoustic waves. It is also involved in designing, processing, and manufacturing of IC (integrated circuits). The company's reportable segments are the video/audio control chip department, and the touch panel control board/touch sensor IC department. The touch panel control board/touch sensor IC department which generates the majority of the company's revenue, focuses on the development and production of touch panel controllers and driver software. Geographically, key revenue for the company is derived from Taiwan, followed by China, and other regions.
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