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Genetics Generation Advancement (ROCO:4160) ROIC % : 27.04% (As of Sep. 2024)


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What is Genetics Generation Advancement 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 %. Genetics Generation Advancement's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 27.04%.

As of today (2025-03-05), Genetics Generation Advancement's WACC % is 6.97%. Genetics Generation Advancement's ROIC % is 24.24% (calculated using TTM income statement data). Genetics Generation Advancement 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.


Genetics Generation Advancement ROIC % Historical Data

The historical data trend for Genetics Generation Advancement'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.

* Premium members only.

Genetics Generation Advancement ROIC % Chart

Genetics Generation Advancement Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.60 -12.97 -2.52 13.28 10.22

Genetics Generation Advancement Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.65 13.28 22.95 31.67 27.04

Competitive Comparison of Genetics Generation Advancement's ROIC %

For the Diagnostics & Research subindustry, Genetics Generation Advancement'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.


Genetics Generation Advancement's ROIC % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Genetics Generation Advancement's ROIC % distribution charts can be found below:

* The bar in red indicates where Genetics Generation Advancement's ROIC % falls into.



Genetics Generation Advancement ROIC % Calculation

Genetics Generation Advancement'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 )
=17.898 * ( 1 - 17.19% )/( (103.594 + 186.424)/ 2 )
=14.8213338/145.009
=10.22 %

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))
=455.663 - 92.832 - ( 259.237 - max(0, 106.215 - 399.346+259.237))
=103.594

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))
=595.053 - 106.613 - ( 315.612 - max(0, 154.562 - 456.578+315.612))
=186.424

Genetics Generation Advancement's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=69.74 * ( 1 - 18.14% )/( (207.603 + 214.626)/ 2 )
=57.089164/211.1145
=27.04 %

where

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))
=790.403 - 123.048 - ( 470.025 - max(0, 171.925 - 631.677+470.025))
=207.603

Invested Capital(Q: Sep. 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))
=759.535 - 133.208 - ( 425.916 - max(0, 180.025 - 591.726+425.916))
=214.626

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


Genetics Generation Advancement  (ROCO:4160) 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, Genetics Generation Advancement's WACC % is 6.97%. Genetics Generation Advancement's ROIC % is 24.24% (calculated using TTM income statement data). Genetics Generation Advancement 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. Genetics Generation Advancement 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.


Genetics Generation Advancement ROIC % Related Terms

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Genetics Generation Advancement Business Description

Traded in Other Exchanges
N/A
Address
No. 28, Lane 36, Xinhu 1st Road, 6th Floor, Neihu District, Taipei, TWN, 11494
Genetics Generation Advancement Corp is a Taiwan based company specialized in genetic testing and scientific information. It is engaged in providing services for the detection of genetic defects and prevention in newborns. Their main services include amniotic fluid chromosome chip screening, pre-implantation genetic diagnosis, and Molecular DNA testing diagnostics. The company is focused on the majority of areas of maternal precision medicine, pediatric disease diagnosis, drug-associated diagnosis, non-invasive cancer detection, and precise health management. The business units of the company are the Genetic Testing Unit and Informatics business unit.

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