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Zhejiang Xianju Pharmaceutical Co (SZSE:002332) ROIC % : 16.43% (As of Sep. 2024)


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What is Zhejiang Xianju Pharmaceutical 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 %. Zhejiang Xianju Pharmaceutical Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 16.43%.

As of today (2025-04-01), Zhejiang Xianju Pharmaceutical Co's WACC % is 10.37%. Zhejiang Xianju Pharmaceutical Co's ROIC % is 13.69% (calculated using TTM income statement data). Zhejiang Xianju Pharmaceutical 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.


Zhejiang Xianju Pharmaceutical Co ROIC % Historical Data

The historical data trend for Zhejiang Xianju Pharmaceutical 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.

Zhejiang Xianju Pharmaceutical Co ROIC % Chart

Zhejiang Xianju Pharmaceutical Co 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 14.01 14.94 15.48 15.58 13.20

Zhejiang Xianju Pharmaceutical Co 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 14.13 8.93 12.45 16.61 16.43

Competitive Comparison of Zhejiang Xianju Pharmaceutical Co's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Zhejiang Xianju Pharmaceutical 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.


Zhejiang Xianju Pharmaceutical Co's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Zhejiang Xianju Pharmaceutical Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Zhejiang Xianju Pharmaceutical Co's ROIC % falls into.


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Zhejiang Xianju Pharmaceutical Co ROIC % Calculation

Zhejiang Xianju Pharmaceutical Co'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 )
=658.112 * ( 1 - 12.4% )/( (4245.431 + 4491.42)/ 2 )
=576.506112/4368.4255
=13.20 %

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))
=6738.017 - 772.12 - ( 1720.466 - max(0, 969.067 - 3434.294+1720.466))
=4245.431

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))
=6992.835 - 841.371 - ( 1660.044 - max(0, 1046.91 - 3399.871+1660.044))
=4491.42

Zhejiang Xianju Pharmaceutical Co'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 )
=917.58 * ( 1 - 11.59% )/( (4850.474 + 5023.99)/ 2 )
=811.232478/4937.232
=16.43 %

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))
=6945.775 - 783.053 - ( 1312.248 - max(0, 993.234 - 3258.905+1312.248))
=4850.474

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))
=6907.74 - 584.996 - ( 1298.754 - max(0, 737.707 - 3198.647+1298.754))
=5023.99

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.


Zhejiang Xianju Pharmaceutical Co  (SZSE:002332) 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, Zhejiang Xianju Pharmaceutical Co's WACC % is 10.37%. Zhejiang Xianju Pharmaceutical Co's ROIC % is 13.69% (calculated using TTM income statement data). Zhejiang Xianju Pharmaceutical 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. Zhejiang Xianju Pharmaceutical 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.


Zhejiang Xianju Pharmaceutical Co ROIC % Related Terms

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Zhejiang Xianju Pharmaceutical Co Business Description

Traded in Other Exchanges
N/A
Address
No. 1 Xianyue Road, Xianju County, Zhejiang Province, CHN, 317300
Zhejiang Xianju Pharmaceutical Co Ltd is a China-based company engaged in the production and sale of drugs. It mainly produces corticosteroids, sex hormones (gynecology and family planning drugs) and anesthesia and muscle relaxants.
Executives
Zhang Yu Song Directors, executives
Chen Wei Ping Securities Affairs Representative
Chen Jie Executives
Jin Jing De Director
Ying Ming Hua Executives
Lu Huan Xing Supervisors
Zheng Bi Jun Supervisors
Zhang Chi Supervisors
Zhang Qi Executives

Zhejiang Xianju Pharmaceutical Co Headlines

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