ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zhong Ji Longevity Science Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 3.31%.
As of today (2024-05-26), Zhong Ji Longevity Science Group's WACC % is 6.42%. Zhong Ji Longevity Science Group's ROIC % is -2.46% (calculated using TTM income statement data).
Zhong Ji Longevity Science Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zhong Ji Longevity Science Group ROIC % Historical Data
* 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.
Competitive Comparison of Zhong Ji Longevity Science Group's ROIC %
For the Credit Services subindustry, Zhong Ji Longevity Science Group'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.
Zhong Ji Longevity Science Group's ROIC % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Zhong Ji Longevity Science Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Zhong Ji Longevity Science Group's ROIC % falls into.
Zhong Ji Longevity Science Group ROIC % Calculation
Zhong Ji Longevity Science Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2023) data.
* 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.
Zhong Ji Longevity Science Group (HKSE:00767) 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, Zhong Ji Longevity Science Group's WACC % is 6.42%. Zhong Ji Longevity Science Group's ROIC % is -2.46% (calculated using TTM income statement data).
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.
Zhong Ji Longevity Science Group ROIC % Related Terms
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Zhong Ji Longevity Science Group (HKSE:00767) Business Description
Zhong Ji Longevity Science Group Ltd is an investment holding company engaged in the business of loan facilitation services business, money lending business, securities and investment business, financial and investment advisory and property investment. It is also engaged in research and development and production of longevity biological products, as well as the development of medical service business including cell and gene therapy and detection test. Its segments consist of Loan facilitation services; Money lending; Securities and other investments; Financial and investment advisory; and Property investment. It derives the majority of revenue from Money Lending segment that loan financing for interest income.
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