ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dirui Industrial Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -12.51%.
As of today (2025-04-03), Dirui Industrial Co's WACC % is 10.13%. Dirui Industrial Co's ROIC % is 6.20% (calculated using TTM income statement data).
Dirui Industrial Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dirui Industrial Co ROIC % Historical Data
The historical data trend for Dirui Industrial 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.
Competitive Comparison of Dirui Industrial Co's ROIC %
For the Diagnostics & Research subindustry, Dirui Industrial 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.
Dirui Industrial Co's ROIC % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Dirui Industrial Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Dirui Industrial 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.
Dirui Industrial Co (SZSE:300396) 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, Dirui Industrial Co's WACC % is 10.13%. Dirui Industrial Co's ROIC % is 6.20% (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.
Dirui Industrial Co ROIC % Related Terms
Thank you for viewing the detailed overview of Dirui Industrial Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dirui Industrial Co Ltd is a supplier of laboratory solutions. It is engaged in research and development, manufacturing, and sales of diagnostic products including laboratory equipment and clinical diagnostic reagents. Dirui's collective product portfolio represents complete laboratory solutions for the in-vitro diagnostic areas of hematology, clinical chemistry, and urinalysis. The company offers chemistry, hematology, urine, and vaginal infection analyzers. It also provides reagents and consumables, such as chemical reagents and detergents, chemistry quality controls/calibrators, ISE reagents, hematology analyzer reagents, urine sediment analyzer reagents, urinalysis controls and strips, and automatic urine analyzer detergents.
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