ORG Technology Co (SZSE:002701) ROC % : 8.88% (As of Mar. 2024)

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What is ORG Technology 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 %. ORG Technology Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 8.88%.

As of today (2024-06-10), ORG Technology Co's WACC % is 8.40%. ORG Technology Co's ROC % is 7.14% (calculated using TTM income statement data). ORG Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ORG Technology Co ROC % Historical Data

The historical data trend for ORG Technology 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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ORG Technology Co ROC % Chart

ORG Technology Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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6.33

7.28

7.74

4.75

6.74

ORG Technology 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															7.00	8.75	7.81	2.85	8.88

ORG Technology Co ROC % Calculation

ORG Technology 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 )
=	1239.204 * ( 1 - 29.73% )	/	( (12870.39	+	12983.316)	/ 2 )
=	870.7886508	/	12926.853
=	6.74 %

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	))
=	17035.963	-	3131.964	-	( 1478.097	-	max(0, 6449.766	-	7483.375	+	1478.097	))
=	12870.39

	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	))
=	16405.749	-	2753.296	-	( 1254.811	-	max(0, 6145.623	-	6814.76	+	1254.811	))
=	12983.316

ORG Technology 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 )
=	1724.352 * ( 1 - 33.91% )	/	( (12983.316	+	12674.484)	/ 2 )
=	1139.6242368	/	12828.9
=	8.88 %

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	))
=	16405.749	-	2753.296	-	( 1254.811	-	max(0, 6145.623	-	6814.76	+	1254.811	))
=	12983.316

	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	))
=	16456.501	-	2942.724	-	( 1427.088	-	max(0, 6131.458	-	6970.751	+	1427.088	))
=	12674.484

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

ORG Technology Co (SZSE:002701) 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, ORG Technology Co's WACC % is 8.40%. ORG Technology Co's ROC % is 7.14% (calculated using TTM income statement data). ORG Technology 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.

ORG Technology Co ROC % Related Terms

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ORG Technology Co (SZSE:002701) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » ORG Technology Co Ltd (SZSE:002701) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

YanQi Industrial Development Zone, Huai Rou District, Beijing, CHN, 101407

Website

https://www.orgtech.cn

ORG Technology Co Ltd is engaged in providing internet information services. The firm engages in offering technology development, technical services, technology testing; product design; economic and trade consultation; automatic identification and identification systems development and application; development and application of visualization and cargo tracking system; development and application of intelligent management system. Geographically it operates through China however it also holds a presence in the international market.

Executives

Zhang Shao Jun	Executives
Zhou Yuan	Director
Zhang Liang De	Executives
Shen Tao	Directors, executives
Zhou Yun Jie	Director
Jiang Xian Da	Supervisors
Huang Zhi Feng	Supervisors
Chen Yu Fei	Executives
Ma Bin Yun	Supervisors
Wang Dong	Directors, executives
Wu Duo Quan	Executives
Gao Shu Jun	Executives, directors
Chen Zhong Ge	Supervisors
Zhao Yu Hui	Directors, executives

ORG Technology Co (SZSE:002701) Headlines

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