Decheng Technology AG (FRA:3330) ROC % : 0.00% (As of Dec. 2023)

View and export this data going back to 2016. Start your Free Trial

What is Decheng Technology AG ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Decheng Technology AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-06-09), Decheng Technology AG's WACC % is -10.82%. Decheng Technology AG's ROC % is -10.16% (calculated using TTM income statement data). Decheng Technology AG 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.

Decheng Technology AG ROC % Historical Data

The historical data trend for Decheng Technology AG's ROC % 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.

Decheng Technology AG ROC % Chart

Decheng Technology AG Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec23

ROC %

255.75

266.24

0.74

0.52

-10.16

Decheng Technology AG Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Mar20	Sep20	Mar21	Sep21	Jun23	Dec23
ROC %	Get a 7-Day Free Trial										-52.15	-6.69	5.29	-5.79	-

Decheng Technology AG ROC % Calculation

Decheng Technology AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2018 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.069 * ( 1 - 0% )	/	( (0.679	+	0)	/ 1 )
=	-0.069	/	0.679
=	-10.16 %

where

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	0.64	-	0.251	-	( 0.002	-	max(0, 0.328	-	0.038	+	0.002	))
=	0.679

	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	))
=	0.913	-	0.177	-	( 0.887	-	max(0, 0.177	-	0.913	+	0.887	))
=	0

Decheng Technology AG's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.054 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.054	/	0
=	%

where

	Invested Capital		(Q: Jun. 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	))
=	1.056	-	0.241	-	( 1.03	-	max(0, 0.241	-	1.056	+	1.03	))
=	0

	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	))
=	0.913	-	0.177	-	( 0.887	-	max(0, 0.177	-	0.913	+	0.887	))
=	0

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

Decheng Technology AG (FRA:3330) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Decheng Technology AG's WACC % is -10.82%. Decheng Technology AG's ROC % is -10.16% (calculated using TTM income statement data). Decheng Technology AG 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.

Be Aware

Like ROE % and ROA %, ROC % 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.

Decheng Technology AG ROC % Related Terms

Thank you for viewing the detailed overview of Decheng Technology AG's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Decheng Technology AG (FRA:3330) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Decheng Technology AG (FRA:3330) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ziegelhauser Landstrasse 3, Heidelberg, DEU, 69120

Website

https://www.decheng-ag.de

Decheng Technology AG is engaged in the research and development, production and marketing of polyurethane resin and related additives in the People's Republic of China. The company's product profile includes Textile Applications, Leather Applications, Magnetic Absorber Material, and others. Its core product is classified into six categories namely Two liquid type polyurethane resin for dry fabrics, Polyurethane produces by the wet winding technology, Polyurethane resin for fiberic coating, Single liquid type polyurethane resin for dry fabrics, Coating additives, and Magnetic absorption polyurethane resin. The Polyurethane resin for fiberic coating generates maximum revenue for the company.

Decheng Technology AG (FRA:3330) Headlines

No Headlines