Impulse (Qingdao) Health Tech Co (SZSE:002899) ROIC % : 10.27% (As of Sep. 2024)

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What is Impulse (Qingdao) Health Tech 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 %. Impulse (Qingdao) Health Tech Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 10.27%.

As of today (2025-03-28), Impulse (Qingdao) Health Tech Co's WACC % is 11.34%. Impulse (Qingdao) Health Tech Co's ROIC % is 7.53% (calculated using TTM income statement data). Impulse (Qingdao) Health Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Impulse (Qingdao) Health Tech Co ROIC % Historical Data

The historical data trend for Impulse (Qingdao) Health Tech 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.

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Impulse (Qingdao) Health Tech Co ROIC % Chart

Impulse (Qingdao) Health Tech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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8.75

11.07

7.63

7.81

6.37

Impulse (Qingdao) Health Tech 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															9.79	3.19	3.28	12.87	10.27

Competitive Comparison of Impulse (Qingdao) Health Tech Co's ROIC %

For the Leisure subindustry, Impulse (Qingdao) Health Tech 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.

Impulse (Qingdao) Health Tech Co's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Impulse (Qingdao) Health Tech Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Impulse (Qingdao) Health Tech Co's ROIC % falls into.

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Impulse (Qingdao) Health Tech Co ROIC % Calculation

Impulse (Qingdao) Health Tech 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 )
=	107.51 * ( 1 - 12.89% )	/	( (1365.228	+	1573.734)	/ 2 )
=	93.651961	/	1469.481
=	6.37 %

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	))
=	2029.995	-	192.022	-	( 472.745	-	max(0, 329.321	-	887.891	+	472.745	))
=	1365.228

	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	))
=	2294.796	-	268.98	-	( 497.658	-	max(0, 423.007	-	875.089	+	497.658	))
=	1573.734

Impulse (Qingdao) Health Tech 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 )
=	196.232 * ( 1 - 8.54% )	/	( (1698.514	+	1796.846)	/ 2 )
=	179.4737872	/	1747.68
=	10.27 %

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	))
=	2843.165	-	359.529	-	( 792.56	-	max(0, 494.909	-	1280.031	+	792.56	))
=	1698.514

	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	))
=	2958.932	-	425.611	-	( 823.412	-	max(0, 607.626	-	1344.101	+	823.412	))
=	1796.846

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

Impulse (Qingdao) Health Tech Co (SZSE:002899) 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, Impulse (Qingdao) Health Tech Co's WACC % is 11.34%. Impulse (Qingdao) Health Tech Co's ROIC % is 7.53% (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.

Impulse (Qingdao) Health Tech Co ROIC % Related Terms

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Impulse (Qingdao) Health Tech Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Impulse (Qingdao) Health Tech Co Ltd (SZSE:002899) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 369 Huashan 2nd road, Jimo, Shandong province, Qingdao, CHN, 266200

Website

http://www.impulsefitness.com

Impulse (Qingdao) Health Tech Co Ltd is a fitness equipment manufacturer specializing in the development, manufacture, sales and operation of all-category and multi-series fitness equipment. Its products include treadmill, elliptical, upright bike, recumbent bike, indoor-cycling and others. Its products are mainly divided into commercial products, household products, and outdoor products.

Executives

Sa Xiao Dong	Supervisors
Zheng Guo Liang	Executives

Impulse (Qingdao) Health Tech Co Headlines

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