Irico Group New Energy Co (HKSE:00438) ROC % : 1.10% (As of Dec. 2023)

View and export this data going back to 2004. Start your Free Trial

What is Irico Group New Energy Co ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Irico Group New Energy Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 1.10%.

As of today (2024-05-26), Irico Group New Energy Co's WACC % is 3.69%. Irico Group New Energy Co's ROC % is -0.66% (calculated using TTM income statement data). Irico Group New Energy Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Irico Group New Energy Co ROC % Historical Data

The historical data trend for Irico Group New Energy Co's ROC % 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.

Irico Group New Energy Co ROC % Chart

Irico Group New Energy Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

2.06

7.34

5.01

2.62

-0.65

Irico Group New Energy Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															0.49	3.41	1.77	-2.76	1.10

Irico Group New Energy Co ROC % Calculation

Irico Group New Energy Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-53.009 * ( 1 - -2.38% )	/	( (7012.695	+	9729.634)	/ 2 )
=	-54.2706142	/	8371.1645
=	-0.65 %

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	))
=	7122.679	-	864.832	-	( 456.833	-	max(0, 3777.102	-	3022.254	+	456.833	))
=	7012.695

	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	))
=	9669.438	-	1214.15	-	( 1040.106	-	max(0, 5014.524	-	3740.178	+	1040.106	))
=	9729.634

Irico Group New Energy Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	94.47 * ( 1 - -2.3% )	/	( (7843.371	+	9729.634)	/ 2 )
=	96.64281	/	8786.5025
=	1.10 %

where

	Invested Capital		(Q: Jun. 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	))
=	7758.505	-	1016.095	-	( 631.314	-	max(0, 4089.122	-	2988.161	+	631.314	))
=	7843.371

	Invested Capital		(Q: 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	))
=	9669.438	-	1214.15	-	( 1040.106	-	max(0, 5014.524	-	3740.178	+	1040.106	))
=	9729.634

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Irico Group New Energy Co (HKSE:00438) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Irico Group New Energy Co's WACC % is 3.69%. Irico Group New Energy Co's ROC % is -0.66% (calculated using TTM income statement data). Irico Group New Energy Co 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 %, ROC % 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.

Irico Group New Energy Co ROC % Related Terms

Thank you for viewing the detailed overview of Irico Group New Energy Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Irico Group New Energy Co (HKSE:00438) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Irico Group New Energy Co Ltd (HKSE:00438) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1 Caihong Road, Qingdu District, Shaanxi Province, Xianyang, CHN, 712021

Website

http://www.irico.com.cn/en

Irico Group New Energy Co Ltd is mainly engaged in the solar photovoltaic business. It operates through the following segments: Solar photovoltaic & module business segment, and Others. The majority of its revenue is derived from Solar Photovoltaic, which includes Solar photovoltaic glass, Solar photovoltaic modules, Solar photovoltaic power stations, and Quartz sand business. Its geographical segments are China (excluding Hong Kong), Hong Kong, and Other countries, of which the majority of its revenue comes from China.

Executives

Xian Yang Zhong Dian Cai Hong Ji Tuan Kong Gu You Xian Gong Si	2101 Beneficial owner
Zhong Dian Jin Tou Kong Gu You Xian Gong Si	2101 Beneficial owner
Zhong Guo Dian Zi Xin Xi Chan Ye Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Cai Hong Ji Tuan You Xian Gong Si	2201 Interest of corporation controlled by you
Hua An Ji Jin Guan Li You Xian Gong Si	2501 Other
Hua An Ji Jin Xin Cheng Dan Yi Zi Chan Guan Li Ji Hua	2501 Other
He Fei Xin Cheng Guo You Zi Chan Jing Ying You Xian Gong Si	2501 Other
Pactera Technologies Na, Inc	2201 Interest of corporation controlled by you

Irico Group New Energy Co (HKSE:00438) Headlines

No Headlines