Xi'an Haitian Antenna Technologies Co (HKSE:08227) ROC % : -73.88% (As of Dec. 2023)

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What is Xi'an Haitian Antenna Technologies Co 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 %. Xi'an Haitian Antenna Technologies Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -73.88%.

As of today (2024-06-08), Xi'an Haitian Antenna Technologies Co's WACC % is 4.33%. Xi'an Haitian Antenna Technologies Co's ROC % is -40.84% (calculated using TTM income statement data). Xi'an Haitian Antenna Technologies Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xi'an Haitian Antenna Technologies Co ROC % Historical Data

The historical data trend for Xi'an Haitian Antenna Technologies Co'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.

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Xi'an Haitian Antenna Technologies Co ROC % Chart

Xi'an Haitian Antenna Technologies Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-22.94

-25.70

-19.51

-27.10

-39.08

Xi'an Haitian Antenna Technologies Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-42.69	-26.84	-41.60	-29.81	-73.88

Xi'an Haitian Antenna Technologies Co ROC % Calculation

Xi'an Haitian Antenna Technologies Co'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. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-29.511 * ( 1 - -0.02% )	/	( (92.94	+	58.129)	/ 2 )
=	-29.5169022	/	75.5345
=	-39.08 %

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	))
=	103.01	-	64.9	-	( 2.444	-	max(0, 88.595	-	33.765	+	2.444	))
=	92.94

	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	))
=	64.057	-	66.815	-	( 2.178	-	max(0, 86.627	-	25.74	+	2.178	))
=	58.129

Xi'an Haitian Antenna Technologies Co'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-44.744 * ( 1 - -0.02% )	/	( (63.021	+	58.129)	/ 2 )
=	-44.7529488	/	60.575
=	-73.88 %

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	))
=	88.182	-	86.251	-	( 1.909	-	max(0, 92.616	-	31.526	+	1.909	))
=	63.021

	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	))
=	64.057	-	66.815	-	( 2.178	-	max(0, 86.627	-	25.74	+	2.178	))
=	58.129

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

Xi'an Haitian Antenna Technologies Co (HKSE:08227) 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, Xi'an Haitian Antenna Technologies Co's WACC % is 4.33%. Xi'an Haitian Antenna Technologies Co's ROC % is -40.84% (calculated using TTM income statement data). Xi'an Haitian Antenna Technologies Co 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 %, 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.

Xi'an Haitian Antenna Technologies Co ROC % Related Terms

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Xi'an Haitian Antenna Technologies Co (HKSE:08227) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Xi'an Haitian Antenna Technologies Co Ltd (HKSE:08227) » Definitions » ROC %

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Address

No.25 Shuoshi Road, Hi-tech Industrial Development Zone, Shaanxi Province, Xi’an, CHN

Website

http://www.xaht.com

Xi'an Haitian Antenna Technologies Co Ltd is mainly engaged in the manufacturing of communication equipment and also the sale of poultry products. The company operates in four segments based on its sales: Antenna products & provision of related services, Underwater monitoring products & related products, Aircraft products, and Agricultural products. Its product portfolio includes underwater imaging, underwater machinery, drones, avionics imaging, monitoring, automotive electronics, mechanical equipment, and others. The majority is from the Antenna products & provision of related services.

Executives

Hongkong Jinsheng Enterprise Co.,limited	2101 Beneficial owner
Wang Bing	2201 Interest of corporation controlled by you
Chen Wei	2101 Beneficial owner
Huang Lihou	2101 Beneficial owner
Oceanic Bliss Holdings Limited	2101 Beneficial owner

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