JD Logistics (STU:822) ROC % : 0.00% (As of Dec. 2023)

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What is JD Logistics 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 %. JD Logistics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-06-09), JD Logistics's WACC % is 8.63%. JD Logistics's ROC % is 0.98% (calculated using TTM income statement data). JD Logistics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

JD Logistics ROC % Historical Data

The historical data trend for JD Logistics'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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JD Logistics ROC % Chart

JD Logistics Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-7.13

4.36

-6.39

1.13

1.63

JD Logistics Quarterly Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial								7.51	2.40	1.31	-	0.38

JD Logistics ROC % Calculation

JD Logistics'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 )
=	202.461 * ( 1 - 27.9% )	/	( (8415.767	+	9545.374)	/ 2 )
=	145.974381	/	8980.5705
=	1.63 %

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	))
=	14447.297	-	2868.759	-	( 4797.069	-	max(0, 4637.095	-	7799.866	+	4797.069	))
=	8415.767

	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	))
=	14499.716	-	2729.071	-	( 4247.46	-	max(0, 5051.244	-	7276.515	+	4247.46	))
=	9545.374

JD Logistics'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (0	+	9545.374)	/ 1 )
=	0	/	9545.374
=	0.00 %

where

	Invested Capital		(Q: Sep. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	14499.716	-	2729.071	-	( 4247.46	-	max(0, 5051.244	-	7276.515	+	4247.46	))
=	9545.374

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

JD Logistics (STU:822) 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, JD Logistics's WACC % is 8.63%. JD Logistics's ROC % is 0.98% (calculated using TTM income statement data). JD Logistics 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.

JD Logistics ROC % Related Terms

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JD Logistics (STU:822) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » JD Logistics Inc (STU:822) » Definitions » ROC %

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JDLGF:USA 02618:Hong Kong

Address

No. 20 Kechuang 11 Street, 8th Floor, Building B, Yizhuang Economic and Technological Development Zone, Daxing District, Beijing, CHN, 101111

Website

https://www.jdl.cn

JD Logistics Inc, owned by leading China e-commerce company JD.com, is a technology-driven supply chain solutions and logistics services provider in China. It offers a full spectrum of supply chain solutions and logistics services, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. JDL services include formulating and executing supply chain strategies. Customers come from a wide array of industries, such as fast-moving consumer goods; or FMCG, apparel; home appliances; home furniture; computers, consumer electronics, and communications, or 3C; automotive; and fresh produce, among others.

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