Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) ROC % : -2.22% (As of Mar. 2024)

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What is Shaanxi Broadcast & TV Network Intermediary (Group) 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 %. Shaanxi Broadcast & TV Network Intermediary (Group) Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -2.22%.

As of today (2024-06-07), Shaanxi Broadcast & TV Network Intermediary (Group) Co's WACC % is 6.15%. Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROC % is -3.26% (calculated using TTM income statement data). Shaanxi Broadcast & TV Network Intermediary (Group) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROC % Historical Data

The historical data trend for Shaanxi Broadcast & TV Network Intermediary (Group) 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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Shaanxi Broadcast & TV Network Intermediary (Group) Co ROC % Chart

Shaanxi Broadcast & TV Network Intermediary (Group) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-0.46

2.47

2.55

3.10

-2.25

Shaanxi Broadcast & TV Network Intermediary (Group) 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															2.07	2.45	-0.30	-12.78	-2.22

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROC % Calculation

Shaanxi Broadcast & TV Network Intermediary (Group) 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 )
=	-223.113 * ( 1 - -0.38% )	/	( (9472.07	+	10474.27)	/ 2 )
=	-223.9608294	/	9973.17
=	-2.25 %

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	))
=	11462.303	-	2445.499	-	( 525.812	-	max(0, 4696.853	-	4241.587	+	525.812	))
=	9472.07

	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	))
=	11647.29	-	2378.51	-	( 358.685	-	max(0, 5442.609	-	4237.119	+	358.685	))
=	10474.27

Shaanxi Broadcast & TV Network Intermediary (Group) 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 )
=	-231.32 * ( 1 - -0.09% )	/	( (10474.27	+	10387.279)	/ 2 )
=	-231.528188	/	10430.7745
=	-2.22 %

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	))
=	11647.29	-	2378.51	-	( 358.685	-	max(0, 5442.609	-	4237.119	+	358.685	))
=	10474.27

	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	))
=	11709.762	-	2306.864	-	( 288.945	-	max(0, 5267.665	-	4283.284	+	288.945	))
=	10387.279

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

Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) 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, Shaanxi Broadcast & TV Network Intermediary (Group) Co's WACC % is 6.15%. Shaanxi Broadcast & TV Network Intermediary (Group) Co's ROC % is -3.26% (calculated using TTM income statement data). Shaanxi Broadcast & TV Network Intermediary (Group) 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.

Shaanxi Broadcast & TV Network Intermediary (Group) Co ROC % Related Terms

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Shaanxi Broadcast & TV Network Intermediary (Group) Co (SHSE:600831) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Shaanxi Broadcast & TV Network Intermediary (Group) Co Ltd (SHSE:600831) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 15 Gaoxin 1st Road, New and High-Technology Development Zone, Xi'an, Shanxi, CHN, 710075

Website

http://www.600831.com

Shaanxi Broadcast & TV Network Intermediary (Group) Co Ltd is engaged in the provision of planning, construction, and operation and management of radio and television network in Shaanxi Province. The company provides digital and cable television services, high-definition interactive services, including basic channel broadcast services, channel broadcast subscription and information services, and video-on-demand services; and data services.

Executives

Han Pu	Directors, senior managers
Fan Dong	senior management
Li Wen Hua	senior management
Li Wen	senior management
Wang Li Qiang	Director
Hu Xiao Lai	senior management
Zhang Yan Bing	senior management
Feng Hui Ming	senior management
Ren Hui	senior management
Xu Qi Huan	senior management
Liu Jin	Director
Xue Chao Hui	senior management
Wang Zhang Yuan	senior management
Fu Chen Ling	senior management
Yan Zhao Xiang	Director

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