Jin Medical International (Jin Medical International) ROIC % : 15.87% (As of Sep. 2023)

View and export this data going back to 2023. Start your Free Trial

What is Jin Medical International 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 %. Jin Medical International's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 15.87%.

As of today (2024-05-16), Jin Medical International's WACC % is 10.39%. Jin Medical International's ROIC % is 22.91% (calculated using TTM income statement data). Jin Medical International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Jin Medical International ROIC % Historical Data

The historical data trend for Jin Medical International'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.

Jin Medical International ROIC % Chart

Jin Medical International Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

ROIC %

19.06

22.30

22.16

24.14

Jin Medical International Semi-Annual Data
	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial			15.97	19.20	23.23	29.81	15.87

Competitive Comparison of Jin Medical International's ROIC %

For the Medical Instruments & Supplies subindustry, Jin Medical International'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.

Jin Medical International's ROIC % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Jin Medical International's ROIC % distribution charts can be found below:

* The bar in red indicates where Jin Medical International's ROIC % falls into.

Jin Medical International ROIC % Calculation

Jin Medical International's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROIC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	2.867 * ( 1 - 10.68% )	/	( (8.997	+	12.223)	/ 2 )
=	2.5608044	/	10.61
=	24.14 %

where

	Invested Capital		(A: Sep. 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	))
=	20.94	-	4.874	-	( 7.069	-	max(0, 5.704	-	18.903	+	7.069	))
=	8.997

	Invested Capital		(A: 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	))
=	32.903	-	3.982	-	( 16.698	-	max(0, 8.924	-	31.116	+	16.698	))
=	12.223

Jin Medical International'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 )
=	2.192 * ( 1 - 11.18% )	/	( (12.307	+	12.223)	/ 2 )
=	1.9469344	/	12.265
=	15.87 %

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	))
=	31.022	-	5.334	-	( 13.381	-	max(0, 7.476	-	29.089	+	13.381	))
=	12.307

	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	))
=	32.903	-	3.982	-	( 16.698	-	max(0, 8.924	-	31.116	+	16.698	))
=	12.223

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

Jin Medical International (NAS:ZJYL) 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, Jin Medical International's WACC % is 10.39%. Jin Medical International's ROIC % is 22.91% (calculated using TTM income statement data). Jin Medical International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Jin Medical International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Jin Medical International ROIC % Related Terms

Thank you for viewing the detailed overview of Jin Medical International's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Jin Medical International (Jin Medical International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Jin Medical International Ltd (NAS:ZJYL) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 33 Lingxiang Road,, Wujin District, Jiangsu Province, Changzhou City, CHN, KY1-1205

Website

Jin Medical International Ltd offers rehabilitation equipment. It is primarily engaged in the design, development, manufacturing, and sales of wheelchair and other living aids products to be used by people with disabilities or impaired mobility. The Company's products are sold to distributors in both China and in overseas markets. Its product offerings comprise Wheelechaire serirs, Bath products, oxygen machines, nursing products, and conlo products.