Nanjing Iron & Steel Co (SHSE:600282) ROC % : 4.01% (As of Mar. 2024)

View and export this data going back to 2000. Start your Free Trial

What is Nanjing Iron & Steel 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 %. Nanjing Iron & Steel Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.01%.

As of today (2024-06-08), Nanjing Iron & Steel Co's WACC % is 6.05%. Nanjing Iron & Steel Co's ROC % is 4.58% (calculated using TTM income statement data). Nanjing Iron & Steel Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nanjing Iron & Steel Co ROC % Historical Data

The historical data trend for Nanjing Iron & Steel 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.

Nanjing Iron & Steel Co ROC % Chart

Nanjing Iron & Steel Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

10.58

8.84

10.84

5.38

4.51

Nanjing Iron & Steel Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															2.93	5.92	4.77	3.59	4.01

Nanjing Iron & Steel Co ROC % Calculation

Nanjing Iron & Steel 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 )
=	3261.535 * ( 1 - 15.23% )	/	( (63656.715	+	59078.189)	/ 2 )
=	2764.8032195	/	61367.452
=	4.51 %

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	))
=	74674.834	-	16508.727	-	( 13562.267	-	max(0, 36242.189	-	30751.581	+	13562.267	))
=	63656.715

	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	))
=	73176.501	-	16522.89	-	( 10533.744	-	max(0, 33845.776	-	31421.198	+	10533.744	))
=	59078.189

Nanjing Iron & Steel Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	2799.192 * ( 1 - 13.03% )	/	( (59078.189	+	62346.361)	/ 2 )
=	2434.4572824	/	60712.275
=	4.01 %

where

	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	))
=	73176.501	-	16522.89	-	( 10533.744	-	max(0, 33845.776	-	31421.198	+	10533.744	))
=	59078.189

	Invested Capital		(Q: Mar. 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	))
=	73256.498	-	13972.184	-	( 8116.271	-	max(0, 34723.253	-	31661.206	+	8116.271	))
=	62346.361

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Nanjing Iron & Steel Co (SHSE:600282) 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, Nanjing Iron & Steel Co's WACC % is 6.05%. Nanjing Iron & Steel Co's ROC % is 4.58% (calculated using TTM income statement data). Nanjing Iron & Steel 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.

Nanjing Iron & Steel Co ROC % Related Terms

Thank you for viewing the detailed overview of Nanjing Iron & Steel Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Nanjing Iron & Steel Co (SHSE:600282) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Nanjing Iron & Steel Co Ltd (SHSE:600282) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Dejiadian, Liuhe District, Jiangsu Province, Nanjing, CHN, 210035

Website

http://www.600282.net

Nanjing Iron & Steel Co Ltd is a China-based company engaged in the business of production and selling of steel products. The company produces rolls, bars, high-speed wire, strips and other steel products. The products are used are used in LNG storage and utilization, shipbuilding and marine engineering, high-speed railway, power steel, automotive steel, bridges and other industries. The company sells its products in China and other international countries.

Executives

Tang Rui	senior management
Shao Ren Zhi	senior management
Su Bin	Director
Zhu Rui Rong	Directors, senior managers
Qian Shun Jiang	Director
Zhu Ping	senior management
Xu Xiao Chun	senior management
Zhao Rui Jiang	Supervisors
Huang Yi Xin	Director
Chu Jue Fei	senior management
Chang Jian Hua	senior management
Lin Guo Qiang	senior management
Yu Zhang Lin	senior management
Xu Lin	senior management
Yao Yong Kuan	Directors, senior managers

Nanjing Iron & Steel Co (SHSE:600282) Headlines

No Headlines