YanGuFang International Group Co (YanGuFang International Group Co) ROC % : 8.82% (As of Dec. 2022)

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What is YanGuFang International 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 %. YanGuFang International Group Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was 8.82%.

As of today (2024-05-24), YanGuFang International Group Co's WACC % is 0.00%. YanGuFang International Group Co's ROC % is 0.00% (calculated using TTM income statement data). YanGuFang International Group Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

YanGuFang International Group Co ROC % Historical Data

The historical data trend for YanGuFang International 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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YanGuFang International Group Co ROC % Chart

YanGuFang International Group Co Annual Data

Trend

Jun20

Jun21

Jun22

ROC %

23.88

30.19

12.13

YanGuFang International Group Co Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROC %	Get a 7-Day Free Trial			18.17	37.91	16.91	7.74	8.82

YanGuFang International Group Co ROC % Calculation

YanGuFang International Group Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	8.507 * ( 1 - 27.21% )	/	( (43.136	+	58.975)	/ 2 )
=	6.1922453	/	51.0555
=	12.13 %

where

	Invested Capital		(A: Jun. 2021 )
=	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	))
=	47.579	-	17.268	-	( 12.563	-	max(0, 27.981	-	15.156	+	12.563	))
=	43.136

	Invested Capital		(A: Jun. 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	))
=	65.545	-	28.535	-	( 5.381	-	max(0, 37.63	-	15.665	+	5.381	))
=	58.975

YanGuFang International Group Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	8.848 * ( 1 - 41.15% )	/	( (58.975	+	59.06)	/ 2 )
=	5.207048	/	59.0175
=	8.82 %

where

	Invested Capital		(Q: Jun. 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	))
=	65.545	-	28.535	-	( 5.381	-	max(0, 37.63	-	15.665	+	5.381	))
=	58.975

	Invested Capital		(Q: 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	))
=	72.13	-	33.75	-	( 6.853	-	max(0, 42.533	-	21.853	+	6.853	))
=	59.06

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

YanGuFang International Group Co (OTCPK:YGFGF) 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, YanGuFang International Group Co's WACC % is 0.00%. YanGuFang International Group Co's ROC % is 0.00% (calculated using TTM income statement data). YanGuFang International 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.

YanGuFang International Group Co ROC % Related Terms

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YanGuFang International Group Co (YanGuFang International Group Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » YanGuFang International Group Co Ltd (OTCPK:YGFGF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

33 Suhong Road, 3rd Floor, Building 3, Minhang District, Shanghai, CHN, 201100

Website

http://www.yangufang.com

YanGuFang International Group Co Ltd is primarily engaged in the production, research and development, and sales of oat and grain products through its direct salesforce and distribution network. Its product portfolio is broadly categorized into oat series products including oat germ groats, oatmeal, oat flour, oat bran, some of which are organic or green food series, and oat nutrient and health series products including oat peptide series, dietary fiber powder, oat biscuits, oil series, oat hand cream, and soap, and oat toothpaste.