Hongli Group (Hongli Group) ROCE % : 3.19% (As of Dec. 2023)

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What is Hongli Group ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hongli Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.19%.

Hongli Group ROCE % Historical Data

The historical data trend for Hongli Group's ROCE % 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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Hongli Group ROCE % Chart

Hongli Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

55.60

45.66

39.64

19.26

6.54

Hongli Group Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial				35.98	33.24	14.83	9.99	3.19

Hongli Group ROCE % Calculation

Hongli Group's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1.575	/	( ( (36.164 - 12.438)	+	(32.129 - 7.683) )	/ 2 )
	=	1.575	/	( (23.726	+	24.446)	/ 2 )
	=	1.575	/	24.086
	=	6.54 %

Hongli Group's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	0.772	/	( ( (31.156 - 7.274)	+	(32.129 - 7.683) )	/ 2 )
	=	0.772	/	( ( 23.882	+	24.446 )	/ 2 )
	=	0.772	/	24.164
	=	3.19 %

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

Hongli Group (NAS:HLP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hongli Group ROCE % Related Terms

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Hongli Group (Hongli Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hongli Group Inc (NAS:HLP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Beisanli Street, Economic Development Zone, Changle County, Weifang, Shandong, CHN, 262400

Website

https://www.hlyxgg.com

Hongli Group Inc is a cold roll formed steel profile manufacturer in China. It customizes and manufactures cold roll formed steel profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation.

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