SK Ie Technology Co (XKRX:361610) ROC % : -6.13% (As of Mar. 2024)

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What is SK Ie 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 %. SK Ie Technology Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -6.13%.

As of today (2024-06-10), SK Ie Technology Co's WACC % is 11.65%. SK Ie Technology Co's ROC % is -0.71% (calculated using TTM income statement data). SK Ie Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SK Ie Technology Co ROC % Historical Data

The historical data trend for SK Ie 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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SK Ie Technology Co ROC % Chart

SK Ie Technology Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

10.06

7.88

3.97

-1.71

0.80

SK Ie Technology Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial											0.19	0.17	0.95	2.14	-6.13

SK Ie Technology Co ROC % Calculation

SK Ie 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 )
=	32027.92 * ( 1 - 16.75% )	/	( (2902936.514	+	3763706.495)	/ 2 )
=	26663.2434	/	3333321.5045
=	0.80 %

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	))
=	3497335.365	-	193358.707	-	( 549270.097	-	max(0, 452456.607	-	853496.751	+	549270.097	))
=	2902936.514

	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	))
=	4083815.083	-	143685.987	-	( 556165.59	-	max(0, 717942.082	-	894364.683	+	556165.59	))
=	3763706.495

SK Ie 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 )
=	-269615.936 * ( 1 - 16.84% )	/	( (3763706.495	+	3555306.118)	/ 2 )
=	-224212.6123776	/	3659506.3065
=	-6.13 %

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	))
=	4083815.083	-	143685.987	-	( 556165.59	-	max(0, 717942.082	-	894364.683	+	556165.59	))
=	3763706.495

	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	))
=	4021576.839	-	95766.184	-	( 430294.06	-	max(0, 304481.789	-	674986.326	+	430294.06	))
=	3555306.118

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

SK Ie Technology Co (XKRX:361610) 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, SK Ie Technology Co's WACC % is 11.65%. SK Ie Technology Co's ROC % is -0.71% (calculated using TTM income statement data). SK Ie 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.

SK Ie Technology Co ROC % Related Terms

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SK Ie Technology Co (XKRX:361610) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » SK Ie Technology Co Ltd (XKRX:361610) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

SK Building, 26, Jongno, Jongno-gu, Seoul, KOR

Website

http://www.skietechnology.com

SK Ie Technology Co Ltd is a material service provider. Its business of Lithium-ion Battery Separator develop separators, a key component in lithium-ion batteries, by applying chemical technologies. The company's Flexible Cover Window is a material, consisting of transparent Pl film and hard coat, to replace the glass cover window of foldable phones, IT devices, and automotive displays.

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