ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Hiconics Eco-energy Technology Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 9.68%.
As of today (2025-04-08), Hiconics Eco-energy Technology Co's WACC % is 12.75%. Hiconics Eco-energy Technology Co's ROIC % is 3.28% (calculated using TTM income statement data).
Hiconics Eco-energy Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hiconics Eco-energy Technology Co ROIC % Historical 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.
Competitive Comparison of Hiconics Eco-energy Technology Co's ROIC %
For the Electrical Equipment & Parts subindustry, Hiconics Eco-energy Technology 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.
Hiconics Eco-energy Technology Co's ROIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hiconics Eco-energy Technology Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Hiconics Eco-energy Technology Co'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.
Hiconics Eco-energy Technology Co (SZSE:300048) 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, Hiconics Eco-energy Technology Co's WACC % is 12.75%. Hiconics Eco-energy Technology Co's ROIC % is 3.28% (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.
Hiconics Eco-energy Technology Co ROIC % Related Terms
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Hiconics Eco-energy Technology Co Business Description
Hiconics Eco-energy Technology Co Ltd is a China-based high-tech enterprise specializing in industrial automation control and new energy equipment. It manufactures high-voltage inverters and transducers in China. The business scope of the company covers industrial automation, new energy vehicles, energy conservation and environmental protection. The product portfolio of the company includes new energy vehicle powertrain, motor controller, auxiliary power system, core components and electrical solutions for inverters, elevator servo systems and control systems and others. Its products have application in electric power, metallurgy, mining, cement, petroleum, municipal, elevator, machine tools, plastics, new energy vehicles, rail transportation, photovoltaic and other industries.
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