Ju Teng International Holdings (HKSE:03336) ROC % : 5.67% (As of Dec. 2023)

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What is Ju Teng International Holdings 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 %. Ju Teng International Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 5.67%.

As of today (2024-06-09), Ju Teng International Holdings's WACC % is 5.95%. Ju Teng International Holdings's ROC % is -2.25% (calculated using TTM income statement data). Ju Teng International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ju Teng International Holdings ROC % Historical Data

The historical data trend for Ju Teng International Holdings'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.

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Ju Teng International Holdings ROC % Chart

Ju Teng International Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.05

2.84

0.68

-0.42

-2.20

Ju Teng International Holdings 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															0.87	0.66	8.98	-4.96	5.67

Ju Teng International Holdings ROC % Calculation

Ju Teng International Holdings'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 )
=	-118.272 * ( 1 - -97.32% )	/	( (11530.171	+	9732.755)	/ 2 )
=	-233.3743104	/	10631.463
=	-2.20 %

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	))
=	14189.93	-	1630.06	-	( 1809.456	-	max(0, 5614.298	-	6643.997	+	1809.456	))
=	11530.171

	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	))
=	12155.514	-	1473.818	-	( 1333.728	-	max(0, 4679.412	-	5628.353	+	1333.728	))
=	9732.755

Ju Teng International Holdings'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 )
=	187.904 * ( 1 - -196.29% )	/	( (9908.024	+	9732.755)	/ 2 )
=	556.7407616	/	9820.3895
=	5.67 %

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	))
=	12677.377	-	1952.84	-	( 1358.847	-	max(0, 5003.381	-	5819.894	+	1358.847	))
=	9908.024

	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	))
=	12155.514	-	1473.818	-	( 1333.728	-	max(0, 4679.412	-	5628.353	+	1333.728	))
=	9732.755

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

Ju Teng International Holdings (HKSE:03336) 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, Ju Teng International Holdings's WACC % is 5.95%. Ju Teng International Holdings's ROC % is -2.25% (calculated using TTM income statement data). Ju Teng International 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 %, 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.

Ju Teng International Holdings ROC % Related Terms

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Ju Teng International Holdings (HKSE:03336) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Ju Teng International Holdings Ltd (HKSE:03336) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

9136:Taiwan

Address

1 Connaught Place, Suites 3311-3312, Jardine House, Central, Hong Kong, HKG

Website

http://www.juteng.com.hk

Ju Teng International Holdings Ltd is a Hong Kong-based manufacturer of computer, communication, and consumer electronics. Its main product line consists of casings for notebooks, televisions, and mobile products. The firm offers structural design, surface treatment, mold design, and volume manufacturing services. Its technological capabilities include plastic injection, high-strength metal stamping, and surface coating technologies. Geographically, it derives the majority of its revenue from the PRC.

Executives

Cheng Li-yen	2501 Other
Bank Of Communications Trustee Limited	2301 Trustee
Cheng Li-yu
Lin Mei-li
East Asia International Trustees Limited
Shine Century Assets Corp.
Nan Ya Guan Li You Xian Gong Si

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