Gotion High-tech Co (SZSE:002074) ROCE % : 2.95% (As of Mar. 2024)

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What is Gotion High-tech 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. Gotion High-tech Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 2.95%.

Gotion High-tech Co ROCE % Historical Data

The historical data trend for Gotion High-tech 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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Gotion High-tech Co ROCE % Chart

Gotion High-tech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.31

3.49

2.12

3.05

4.87

Gotion High-tech Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															3.26	3.59	3.46	8.41	2.95

Gotion High-tech Co ROCE % Calculation

Gotion High-tech 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 )
	=	2105.757	/	( ( (72627.365 - 34369.078)	+	(93592.652 - 45366.027) )	/ 2 )
	=	2105.757	/	( (38258.287	+	48226.625)	/ 2 )
	=	2105.757	/	43242.456
	=	4.87 %

Gotion High-tech Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	1452.252	/	( ( (93592.652 - 45366.027)	+	(97570.587 - 47184.455) )	/ 2 )
	=	1452.252	/	( ( 48226.625	+	50386.132 )	/ 2 )
	=	1452.252	/	49306.3785
	=	2.95 %

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

Gotion High-tech Co (SZSE:002074) 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.

Gotion High-tech Co ROCE % Related Terms

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Gotion High-tech Co (SZSE:002074) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Gotion High-tech Co Ltd (SZSE:002074) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

No. 599 Daihe Road, Xinzhan District, Hefei, CHN, 230012

Website

http://www.gotion.com.cn

Established in 2006 in Hefei, Anhui province, Gotion High-tech, is one of the first enterprises engaged in research, production, and sales of rechargeable lithium-ion batteries for NEVs in China. Its main products include lithium iron phosphate materials and batteries, ternary batteries, battery packs, and energy storage batteries. The products are widely used in new energy passenger vehicles, commercial vehicles, energy storage power plants, communication base stations, and so on. Gotion ranked eighth among global EV battery companies with 3% market share in 2022 in terms of installed capacity, and fourth in China with 5% market share. The company is 25%-owned by Volkswagen Group with Chairman Li Zhen holding around 7%.

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