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Guangdong Dongfang Precision Science & Tech Co (SZSE:002611) ROIC % : 7.73% (As of Mar. 2024)


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What is Guangdong Dongfang Precision Science & Tech Co 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 %. Guangdong Dongfang Precision Science & Tech Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 7.73%.

As of today (2024-05-28), Guangdong Dongfang Precision Science & Tech Co's WACC % is 15.83%. Guangdong Dongfang Precision Science & Tech Co's ROIC % is 11.71% (calculated using TTM income statement data). Guangdong Dongfang Precision Science & Tech Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Guangdong Dongfang Precision Science & Tech Co ROIC % Historical Data

The historical data trend for Guangdong Dongfang Precision Science & Tech Co'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.

* Premium members only.

Guangdong Dongfang Precision Science & Tech Co ROIC % Chart

Guangdong Dongfang Precision Science & Tech Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.61 11.10 14.11 13.95 12.10

Guangdong Dongfang Precision Science & Tech Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.40 12.78 8.92 16.69 7.73

Competitive Comparison of Guangdong Dongfang Precision Science & Tech Co's ROIC %

For the Specialty Industrial Machinery subindustry, Guangdong Dongfang Precision Science & Tech Co'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.


Guangdong Dongfang Precision Science & Tech Co's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Guangdong Dongfang Precision Science & Tech Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Guangdong Dongfang Precision Science & Tech Co's ROIC % falls into.



Guangdong Dongfang Precision Science & Tech Co ROIC % Calculation

Guangdong Dongfang Precision Science & Tech Co'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 )
=636.772 * ( 1 - 28.6% )/( (3657.173 + 3859.252)/ 2 )
=454.655208/3758.2125
=12.10 %

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))
=6928.577 - 1136.125 - ( 2135.279 - max(0, 2249.287 - 4692.607+2135.279))
=3657.173

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))
=7538.223 - 1237.286 - ( 2509.045 - max(0, 2435.492 - 4877.177+2509.045))
=3859.252

Guangdong Dongfang Precision Science & Tech Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=511.408 * ( 1 - 41.14% )/( (3859.252 + 3924.335)/ 2 )
=301.0147488/3891.7935
=7.73 %

where

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))
=7538.223 - 1237.286 - ( 2509.045 - max(0, 2435.492 - 4877.177+2509.045))
=3859.252

Invested Capital(Q: Mar. 2024 )
=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))
=7346.743 - 1126.837 - ( 2295.571 - max(0, 2235.302 - 4589.959+2295.571))
=3924.335

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

* 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.


Guangdong Dongfang Precision Science & Tech Co  (SZSE:002611) 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, Guangdong Dongfang Precision Science & Tech Co's WACC % is 15.83%. Guangdong Dongfang Precision Science & Tech Co's ROIC % is 11.71% (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.


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Guangdong Dongfang Precision Science & Tech Co (SZSE:002611) Business Description

Traded in Other Exchanges
N/A
Address
No. 2, Zhenqiangshi Road, Nanhai District, Guangdong Province, Foshan, CHN
Guangdong Dongfang Precision Science & Tech Co Ltd is a China-based company that engages in the process, manufacture, and sale of carton printing equipment and accessories. The main products of the company's intelligent packaging equipment business include corrugated cardboard production line, corrugated box printing complete production line, pre-press, post-press intelligent automation equipment, and automated logistics systems. Some of the company's standalone printing products equipment include TOPRA AD, TOPRA GT, APSTAR HG 2, and APSTAR HS. The company's products are exported to more than 30 countries and regions, including Europe, America, Asia, Africa, Latin America, and Oceania.
Executives
Xie Wei Wei Directors, executives
Qiu Ye Zhi Directors, executives
Li Ke Tian Independent director
Yang Ya Li Directors, executives
Tang Zhuo Mian Director
Tang Zhuo Lin Director
Tang Yan Ling Supervisors
Cen Mei Ling Supervisors

Guangdong Dongfang Precision Science & Tech Co (SZSE:002611) Headlines

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