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Wuhu Token Science Co (SZSE:300088) ROIC % : 3.84% (As of Sep. 2024)


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What is Wuhu Token Science 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 %. Wuhu Token Science Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 3.84%.

As of today (2024-12-11), Wuhu Token Science Co's WACC % is 10.89%. Wuhu Token Science Co's ROIC % is 2.43% (calculated using TTM income statement data). Wuhu Token Science Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Wuhu Token Science Co ROIC % Historical Data

The historical data trend for Wuhu Token Science 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.

Wuhu Token Science Co ROIC % Chart

Wuhu Token Science 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 13.14 15.75 12.99 8.00 3.68

Wuhu Token Science 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 4.93 0.02 2.26 3.31 3.84

Competitive Comparison of Wuhu Token Science Co's ROIC %

For the Electronic Components subindustry, Wuhu Token Science 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.


Wuhu Token Science Co's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Wuhu Token Science Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Wuhu Token Science Co's ROIC % falls into.



Wuhu Token Science Co ROIC % Calculation

Wuhu Token Science 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 )
=386.062 * ( 1 - 6.55% )/( (9336.454 + 10284.981)/ 2 )
=360.774939/9810.7175
=3.68 %

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))
=13064.816 - 2474.937 - ( 1728.467 - max(0, 3642.637 - 4896.062+1728.467))
=9336.454

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))
=14290.841 - 2806.839 - ( 1556.396 - max(0, 4672.456 - 5871.477+1556.396))
=10284.981

Wuhu Token Science 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 )
=416.992 * ( 1 - -6.77% )/( (11395.48 + 11781.74)/ 2 )
=445.2223584/11588.61
=3.84 %

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))
=15489.477 - 2985.611 - ( 1530.056 - max(0, 5808.262 - 6916.648+1530.056))
=11395.48

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))
=16080.184 - 3074.589 - ( 1728.937 - max(0, 6265.512 - 7489.367+1728.937))
=11781.74

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.


Wuhu Token Science Co  (SZSE:300088) 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, Wuhu Token Science Co's WACC % is 10.89%. Wuhu Token Science Co's ROIC % is 2.43% (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.


Wuhu Token Science Co ROIC % Related Terms

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Wuhu Token Science Co Business Description

Traded in Other Exchanges
N/A
Address
Wuhu Economic and Technological Development Zone, Jinger Road, East of steam, Wuhu, Anhui, CHN, 241009
Wuhu Token Science Co Ltd is engaged in the research, development, production, and sales of new flat panel display devices and materials, touch screen and touch display modules, ultra-thin display panels, vacuum photocouplic coating products, and other coating products, display glass and organic materials cover and other electronic display devices and materials, related optoelectronic components and related optical and electronic equipment, spare parts, electronic raw materials.
Executives
Zou Zhen Executives
Ding Li Jian Independent director
Gao Qian Wen Director
Chen Qi Director
Chen Wei Da Directors, executives
Lian Jian Director
Pan Zhi Supervisors
Ning Peng Fei Directors, executives
Chen Xi Lin Directors, executives
Sun Jian Ye Independent director
Shen Li Directors, executives

Wuhu Token Science Co Headlines

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