Fortune Ng Fung Food (hebei) Co (SHSE:600965) ROIC % : 4.94% (As of Dec. 2024)

View and export this data going back to 2004. Start your Free Trial

What is Fortune Ng Fung Food (hebei) Co 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 %. Fortune Ng Fung Food (hebei) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 4.94%.

As of today (2025-04-08), Fortune Ng Fung Food (hebei) Co's WACC % is 11.45%. Fortune Ng Fung Food (hebei) Co's ROIC % is 2.71% (calculated using TTM income statement data). Fortune Ng Fung Food (hebei) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fortune Ng Fung Food (hebei) Co ROIC % Historical Data

The historical data trend for Fortune Ng Fung Food (hebei) Co'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.

Fortune Ng Fung Food (hebei) Co ROIC % Chart

Fortune Ng Fung Food (hebei) Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROIC %

Get a 7-Day Free Trial

6.15

8.76

8.05

7.03

2.70

Fortune Ng Fung Food (hebei) Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROIC %	Get a 7-Day Free Trial															2.97	4.30	1.23	-1.33	4.94

Competitive Comparison of Fortune Ng Fung Food (hebei) Co's ROIC %

For the Farm Products subindustry, Fortune Ng Fung Food (hebei) 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.

Fortune Ng Fung Food (hebei) Co's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fortune Ng Fung Food (hebei) Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Fortune Ng Fung Food (hebei) Co's ROIC % falls into.

Save Embed

;

Save Embed

;

Fortune Ng Fung Food (hebei) Co ROIC % Calculation

Fortune Ng Fung Food (hebei) Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROIC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	75.485 * ( 1 - 20.12% )	/	( (2189.275	+	2279.045)	/ 2 )
=	60.297418	/	2234.16
=	2.70 %

where

	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	))
=	2562.67	-	235.898	-	( 137.497	-	max(0, 282.098	-	1112.883	+	137.497	))
=	2189.275

	Invested Capital		(A: Dec. 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	))
=	2601.047	-	225.389	-	( 96.613	-	max(0, 346.452	-	1166.08	+	96.613	))
=	2279.045

Fortune Ng Fung Food (hebei) Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROIC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	117.632 * ( 1 - 4.19% )	/	( (2280.799	+	2279.045)	/ 2 )
=	112.7032192	/	2279.922
=	4.94 %

where

	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	))
=	2611.838	-	230.592	-	( 100.447	-	max(0, 352.533	-	1120.482	+	100.447	))
=	2280.799

	Invested Capital		(Q: Dec. 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	))
=	2601.047	-	225.389	-	( 96.613	-	max(0, 346.452	-	1166.08	+	96.613	))
=	2279.045

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

Fortune Ng Fung Food (hebei) Co (SHSE:600965) 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, Fortune Ng Fung Food (hebei) Co's WACC % is 11.45%. Fortune Ng Fung Food (hebei) Co's ROIC % is 2.71% (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.

Fortune Ng Fung Food (hebei) Co ROIC % Related Terms

Thank you for viewing the detailed overview of Fortune Ng Fung Food (hebei) Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Fortune Ng Fung Food (hebei) Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fortune Ng Fung Food (hebei) Co Ltd (SHSE:600965) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yanjiao Economic and Technology Development Zone, Hebei Province, Sanhe, CHN, 065201

Website

http://www.fucheng.net

Fortune Ng Fung Food (hebei) Co Ltd is engaged in the cattle breeding and dairy farming businesses in China. It is primarily involved in beef cattle breeding, dairy farming, beef cattle slaughter and processing, milk production, food chain, feed production and organic fertilizer production. The company's main products are live cattle, beef, lamb, meat products, dairy cows, dairy products, fast food, hot pot chain and so on. Geographically the business activities are carried out through China.

Executives

Wu Jian

Supervisors

Fortune Ng Fung Food (hebei) Co Headlines

No Headlines