WXT (Wuxin Technology Holdings) ROIC %: 104.98% (As of Dec. 2021)


What is Wuxin Technology Holdings ROIC %?

Wuxin Technology Holdings WXT ROIC % is 104.98% as of Dec. 2021.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wuxin Technology Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2021 was 104.98%.

As of today (2026-06-26), Wuxin Technology Holdings's WACC % is 0.00%. Wuxin Technology Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Wuxin Technology Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Wuxin Technology Holdings  (NAS:WXT) 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, Wuxin Technology Holdings's WACC % is 0.00%. Wuxin Technology Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Wuxin Technology Holdings 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.


Wuxin Technology Holdings ROIC % Related Terms


Wuxin Technology Holdings ROIC % Historical Data

* Premium members only.

The historical data trend for Wuxin Technology Holdings'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.

Wuxin Technology Holdings ROIC % Chart

Wuxin Technology Holdings Annual Data
Trend Jun20 Jun21
ROIC %
31.03 37.25

Wuxin Technology Holdings Quarterly Data
Jun20 Dec20 Jun21 Dec21
ROIC % 0.00 131.50 37.53 104.98

WXT vs : ROIC % Comparison

For the Communication Equipment subindustry, Wuxin Technology Holdings'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.


Wuxin Technology Holdings ROIC % vs Hardware Industry

For the Hardware industry and Technology sector, Wuxin Technology Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Wuxin Technology Holdings's ROIC % falls into.



Wuxin Technology Holdings ROIC % Calculation

Wuxin Technology Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2021 is calculated as:

ROIC % (A: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2020 ) + Invested Capital (A: Jun. 2021 ))/ count )
=6.691 * ( 1 - 8.34% )/( (12.983 + 19.945)/ 2 )
=6.1329706/16.464
=37.25 %

where

Wuxin Technology Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2021 is calculated as:

ROIC % (Q: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Dec. 2021 ))/ count )
=24.468 * ( 1 - 5.81% )/( (19.945 + 23.961)/ 2 )
=23.0464092/21.953
=104.98 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 104.98% mean?
Wuxin Technology Holdings (WXT) has a ROIC % of 104.98% as of Dec. 2021. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Wuxin Technology Holdings and its competitors.
Is Wuxin Technology Holdings' ROIC % too high?
Wuxin Technology Holdings' current ROIC % is 104.98%. The Hardware industry median ROIC % is 4.12. Wuxin Technology Holdings' value of 104.98% is 2448.1% above this industry median.
How does Wuxin Technology Holdings' ROIC % compare to ?
Wuxin Technology Holdings' ROIC % of 104.98% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. Wuxin Technology Holdings' value of 104.98% is 2448.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.12, based on 2,443 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wuxin Technology Holdings's current ROIC % of 104.98% is 2448.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Wuxin Technology Holdings and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wuxin Technology Holdings's current ROIC % is 104.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wuxin Technology Holdings stock overvalued right now?
Wuxin Technology Holdings (WXT) has a current ROIC % of 104.98%. The current ROIC % is 104.98% and 2448.1% above the Hardware industry median of 4.12. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Wuxin Technology Holdings (WXT), the current ROIC % is 104.98% as of Dec. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Wuxin Technology Holdings Business Description

Comparable Companies
Address No. 2 Qiongyu Road, Nanshan District, Tefa Information and Technology Plaza, Floor 15, Shenzhen, CHN, 518052
Wuxin Technology Holdings Inc is engaged in providing Internet of Things connectivity solutions. The company has developed an ant delete center (ADC) protocol, which is a wireless, decentralized, and ad hoc protocol derived from the foraging principle of ant colonies, and allows an IoT network of numerous nodes to efficiently detect the shortest path of data transmission and decentralize the control.