Hongcheng Environmental Technology Co (HKSE:02265) ROCE % : 4.03% (As of Dec. 2023)

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What is Hongcheng Environmental Technology Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hongcheng Environmental Technology Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.03%.

Hongcheng Environmental Technology Co ROCE % Historical Data

The historical data trend for Hongcheng Environmental Technology Co's ROCE % 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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Hongcheng Environmental Technology Co ROCE % Chart

Hongcheng Environmental Technology Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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46.81

40.43

29.52

19.50

4.93

Hongcheng Environmental Technology Co Semi-Annual Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial				26.33	22.23	17.33	6.04	4.03

Hongcheng Environmental Technology Co ROCE % Calculation

Hongcheng Environmental Technology Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	31.645	/	( ( (846.232 - 239.875)	+	(871.364 - 194.361) )	/ 2 )
	=	31.645	/	( (606.357	+	677.003)	/ 2 )
	=	31.645	/	641.68
	=	4.93 %

Hongcheng Environmental Technology Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	26.164	/	( ( (828.369 - 205.403)	+	(871.364 - 194.361) )	/ 2 )
	=	26.164	/	( ( 622.966	+	677.003 )	/ 2 )
	=	26.164	/	649.9845
	=	4.03 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Hongcheng Environmental Technology Co (HKSE:02265) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hongcheng Environmental Technology Co ROCE % Related Terms

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Hongcheng Environmental Technology Co (HKSE:02265) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Hongcheng Environmental Technology Co Ltd (HKSE:02265) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yeyan Road North, Dadongzhuang Village North, Shahe Town, Shandong Province, Yantai, Laizhou, CHN

Website

http://www.sdhcgroup.cn

Hongcheng Environmental Technology Co Ltd is an investment holding company. The company and its subsidiaries are engaged in the provision of gold mine hazardous waste treatment services and recycling and extracting therefrom resources with economic value for sale, such as pyrite concentrate.

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