Bomin Electronics Co (SHSE:603936) ROC % : 2.41% (As of Mar. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Bomin Electronics 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 %. Bomin Electronics Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 2.41%.

As of today (2024-06-10), Bomin Electronics Co's WACC % is 14.38%. Bomin Electronics Co's ROC % is -0.28% (calculated using TTM income statement data). Bomin Electronics Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bomin Electronics Co ROC % Historical Data

The historical data trend for Bomin Electronics 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.

* Premium members only.

Bomin Electronics Co ROC % Chart

Bomin Electronics Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

8.23

9.09

8.20

3.37

-0.47

Bomin Electronics Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															2.21	3.64	-0.58	-7.06	2.41

Bomin Electronics Co ROC % Calculation

Bomin Electronics 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 )
=	-28.737 * ( 1 - 4.04% )	/	( (5598.359	+	6163.462)	/ 2 )
=	-27.5760252	/	5880.9105
=	-0.47 %

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	))
=	6930.224	-	1338.806	-	( 483.888	-	max(0, 2425.005	-	2418.064	+	483.888	))
=	5598.359

	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	))
=	7972.076	-	1393.209	-	( 415.405	-	max(0, 2308.689	-	3116.521	+	415.405	))
=	6163.462

Bomin Electronics Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	169.84 * ( 1 - 11.25% )	/	( (6163.462	+	6359.114)	/ 2 )
=	150.733	/	6261.288
=	2.41 %

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	))
=	7972.076	-	1393.209	-	( 415.405	-	max(0, 2308.689	-	3116.521	+	415.405	))
=	6163.462

	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	))
=	8265.255	-	1366.486	-	( 539.655	-	max(0, 2626.185	-	3309.028	+	539.655	))
=	6359.114

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

Bomin Electronics Co (SHSE:603936) 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, Bomin Electronics Co's WACC % is 14.38%. Bomin Electronics Co's ROC % is -0.28% (calculated using TTM income statement data). Bomin Electronics 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.

Bomin Electronics Co ROC % Related Terms

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

Bomin Electronics Co (SHSE:603936) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Bomin Electronics Co Ltd (SHSE:603936) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Intersection of Baohua Road and Haitian Road, 28th Floor, Block C, Baozhong Excellence Times Square, Baoan District, Shenzhen, CHN

Website

http://www.bominelec.com

Bomin Electronics Co Ltd is a PCB manufacturer. The company is engaged in the production of high-end printed circuit boards, integrating design, processing, sales, and foreign trade. The company products include HDI (high-density interconnect) board, ordinary double-sided, multi-layer, microwave high frequency, thick copper, metal, and soft board, soft and hard board. The products are used in communication equipment, medical equipment high-tech fields such as military high-tech products, inspection systems, aerospace, and home electronics.

Executives

Liu Yan Ping	Directors, senior managers
Han Zhi Wei	senior management
Tan Xin	senior management
Xie Jian Zhong	Director
Xie Xiao Mei	Director
Xu Huan	Director
Liu Yuan Cheng	Directors, senior managers
Song Zhi Fu	Supervisors
Wang Qiang	senior management
Deng Hong Xi	senior management
Huang Ji Mao	Director

Bomin Electronics Co (SHSE:603936) Headlines

No Headlines