Paranovus Entertainment Technology (Paranovus Entertainment Technology) ROIC % : -98.62% (As of Sep. 2023)

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What is Paranovus Entertainment Technology 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 %. Paranovus Entertainment Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -98.62%.

As of today (2024-05-17), Paranovus Entertainment Technology's WACC % is 3.48%. Paranovus Entertainment Technology's ROIC % is -250.77% (calculated using TTM income statement data). Paranovus Entertainment Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Paranovus Entertainment Technology ROIC % Historical Data

The historical data trend for Paranovus Entertainment Technology'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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Paranovus Entertainment Technology ROIC % Chart

Paranovus Entertainment Technology Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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44.28

26.45

1.15

-69.19

-128.16

Paranovus Entertainment Technology Semi-Annual Data
	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial									-38.53	-120.47	-7.72	-314.78	-98.62

Competitive Comparison of Paranovus Entertainment Technology's ROIC %

For the Packaged Foods subindustry, Paranovus Entertainment Technology'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.

Paranovus Entertainment Technology's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Paranovus Entertainment Technology's ROIC % distribution charts can be found below:

* The bar in red indicates where Paranovus Entertainment Technology's ROIC % falls into.

Paranovus Entertainment Technology ROIC % Calculation

Paranovus Entertainment Technology's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-60.522 * ( 1 - -5.03% )	/	( (65.34	+	33.855)	/ 2 )
=	-63.5662566	/	49.5975
=	-128.16 %

where

	Invested Capital		(A: Mar. 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	))
=	97.426	-	12.352	-	( 19.734	-	max(0, 17.931	-	56.57	+	19.734	))
=	65.34

	Invested Capital		(A: Mar. 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	))
=	36.34	-	13.652	-	( 3.355	-	max(0, 20.953	-	9.786	+	3.355	))
=	33.855

Paranovus Entertainment Technology's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-21.448 * ( 1 - 0% )	/	( (33.855	+	9.64)	/ 2 )
=	-21.448	/	21.7475
=	-98.62 %

where

	Invested Capital		(Q: Mar. 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	))
=	36.34	-	13.652	-	( 3.355	-	max(0, 20.953	-	9.786	+	3.355	))
=	33.855

	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	))
=	11.17	-	0.493	-	( 1.037	-	max(0, 0.493	-	1.972	+	1.037	))
=	9.64

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Paranovus Entertainment Technology (NAS:PAVS) 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, Paranovus Entertainment Technology's WACC % is 3.48%. Paranovus Entertainment Technology's ROIC % is -250.77% (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.

Paranovus Entertainment Technology ROIC % Related Terms

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Paranovus Entertainment Technology (Paranovus Entertainment Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Paranovus Entertainment Technology Ltd (NAS:PAVS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Number 11, Dongjiao East Road, Shuangxi, Shunchang, Fujian Province, Nanping, CHN, 353200

Website

https://www.happ.org.cn

Paranovus Entertainment Technology Ltd is a nutraceutical and dietary supplements producer focused on the research, development, manufacturing, and marketing of products made from Chinese herbal extracts. The company's segment includes Healthcare products; Automobile; Online store and Internet information and advertising service. It generates maximum revenue from the Online store segment.