Jinhui Shipping and Transportation (OSL:JIN) ROIC % : -2.17% (As of Dec. 2023)

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What is Jinhui Shipping and Transportation ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Jinhui Shipping and Transportation's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -2.17%.

As of today (2024-05-21), Jinhui Shipping and Transportation's WACC % is 6.86%. Jinhui Shipping and Transportation's ROIC % is -4.94% (calculated using TTM income statement data). Jinhui Shipping and Transportation earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jinhui Shipping and Transportation ROIC % Historical Data

The historical data trend for Jinhui Shipping and Transportation's ROIC % 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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Jinhui Shipping and Transportation ROIC % Chart

Jinhui Shipping and Transportation Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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0.13

-4.64

13.71

6.88

-6.17

Jinhui Shipping and Transportation Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-0.30	0.46	-11.08	-6.13	-2.17

Competitive Comparison of Jinhui Shipping and Transportation's ROIC %

For the Marine Shipping subindustry, Jinhui Shipping and Transportation's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Jinhui Shipping and Transportation's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Jinhui Shipping and Transportation's ROIC % distribution charts can be found below:

* The bar in red indicates where Jinhui Shipping and Transportation's ROIC % falls into.

Jinhui Shipping and Transportation ROIC % Calculation

Jinhui Shipping and Transportation's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-291.396 * ( 1 - 0% )	/	( (4874.89	+	4570.349)	/ 2 )
=	-291.396	/	4722.6195
=	-6.17 %

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	))
=	5318.576	-	106.251	-	( 618.297	-	max(0, 528.101	-	865.536	+	618.297	))
=	4874.89

	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	))
=	5102.038	-	102.93	-	( 678.791	-	max(0, 569.193	-	997.952	+	678.791	))
=	4570.349

Jinhui Shipping and Transportation's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-101.36 * ( 1 - 0% )	/	( (4781.919	+	4570.349)	/ 2 )
=	-101.36	/	4676.134
=	-2.17 %

where

	Invested Capital		(Q: Sep. 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	))
=	5306.228	-	128.278	-	( 549.405	-	max(0, 511.858	-	907.889	+	549.405	))
=	4781.919

	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	))
=	5102.038	-	102.93	-	( 678.791	-	max(0, 569.193	-	997.952	+	678.791	))
=	4570.349

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Jinhui Shipping and Transportation (OSL:JIN) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Jinhui Shipping and Transportation's WACC % is 6.86%. Jinhui Shipping and Transportation's ROIC % is -4.94% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Jinhui Shipping and Transportation ROIC % Related Terms

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Jinhui Shipping and Transportation (OSL:JIN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Jinhui Shipping and Transportation Ltd (OSL:JIN) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

JINO:Sweden

Address

1-6 Connaught Road West, 26th Floor, Yardley Commercial Building, Hong Kong, HKG

Website

http://www.jinhuiship.com/jst

Jinhui Shipping and Transportation Ltd is an investment holding company. It operates its business through its subsidiaries. It principal activities of the business are ship chartering and ship owning. Geographically, it operates in various countries like China, Singapore, Ireland, South Korea, and Thailand. The majority of the revenue comes from the Singapore.

Jinhui Shipping and Transportation (OSL:JIN) Headlines

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