COSCO SHIPPING Specialized Carriers Co (SHSE:600428) ROC % : 6.00% (As of Mar. 2024)

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What is COSCO SHIPPING Specialized Carriers 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 %. COSCO SHIPPING Specialized Carriers Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 6.00%.

As of today (2024-06-12), COSCO SHIPPING Specialized Carriers Co's WACC % is 8.72%. COSCO SHIPPING Specialized Carriers Co's ROC % is 3.99% (calculated using TTM income statement data). COSCO SHIPPING Specialized Carriers Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

COSCO SHIPPING Specialized Carriers Co ROC % Historical Data

The historical data trend for COSCO SHIPPING Specialized Carriers 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.

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COSCO SHIPPING Specialized Carriers Co ROC % Chart

COSCO SHIPPING Specialized Carriers Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.22

1.58

3.58

6.06

3.98

COSCO SHIPPING Specialized Carriers 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															5.95	4.30	3.95	1.36	6.00

COSCO SHIPPING Specialized Carriers Co ROC % Calculation

COSCO SHIPPING Specialized Carriers 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 )
=	1092.552 * ( 1 - 9.5% )	/	( (24131.267	+	25606.109)	/ 2 )
=	988.75956	/	24868.688
=	3.98 %

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	))
=	25360.211	-	2917.731	-	( 997.053	-	max(0, 5817.938	-	4129.151	+	997.053	))
=	24131.267

	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	))
=	27565.701	-	2695.863	-	( 1481.547	-	max(0, 5138.843	-	4402.572	+	1481.547	))
=	25606.109

COSCO SHIPPING Specialized Carriers 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 )
=	1807.772 * ( 1 - 15.21% )	/	( (25606.109	+	25483.825)	/ 2 )
=	1532.8098788	/	25544.967
=	6.00 %

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	))
=	27565.701	-	2695.863	-	( 1481.547	-	max(0, 5138.843	-	4402.572	+	1481.547	))
=	25606.109

	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	))
=	28037.837	-	3178.225	-	( 1338.475	-	max(0, 5630.811	-	5006.598	+	1338.475	))
=	25483.825

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

COSCO SHIPPING Specialized Carriers Co (SHSE:600428) 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, COSCO SHIPPING Specialized Carriers Co's WACC % is 8.72%. COSCO SHIPPING Specialized Carriers Co's ROC % is 3.99% (calculated using TTM income statement data). COSCO SHIPPING Specialized Carriers 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.

COSCO SHIPPING Specialized Carriers Co ROC % Related Terms

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COSCO SHIPPING Specialized Carriers Co (SHSE:600428) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » COSCO SHIPPING Specialized Carriers Co Ltd (SHSE:600428) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 282 Dongjiang Avenue, Free Trade Zone, Kangsheng Building, Guangdong Province, Guangzhou, CHN, 510623

Website

http://www.coscol.com.cn

COSCO Shipping is mainly engaged in the multipurpose shipping business. It also offers specialized shipping services. The company's specialized shipping unit owns semisubmersible ships, heavy-lift ships, roll-on/roll-off vessels, and vehicle carriers. Parent company COSCO owns a 50.13% stake in COSCO Shipping. At the end of December 2010, COSCO Shipping owned 77 ships with a total shipping capacity of 1.3173 million deadweight tons.

Executives

Han Guo Min	senior management
Fang Zhi Wei	Supervisors
Guo Jing	Director
Lin Jing Wei	senior management
Guo Fu Xiang	senior management
Lai Yi Guang	senior management
Tan Jin Song	Director
Du Jun Ming	senior management
Xue Jun Dong	senior management
Jin Li Zuo	Director

COSCO SHIPPING Specialized Carriers Co (SHSE:600428) Headlines

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