ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kangda New Materials (Group) Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -1.02%.
As of today (2024-05-30), Kangda New Materials (Group) Co's WACC % is 10.28%. Kangda New Materials (Group) Co's ROIC % is 1.72% (calculated using TTM income statement data).
Kangda New Materials (Group) Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kangda New Materials (Group) Co 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 Kangda New Materials (Group) Co's ROIC %
For the Specialty Chemicals subindustry, Kangda New Materials (Group) Co'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.
Kangda New Materials (Group) Co's ROIC % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kangda New Materials (Group) Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Kangda New Materials (Group) Co's ROIC % falls into.
Kangda New Materials (Group) Co ROIC % Calculation
Kangda New Materials (Group) Co'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 four times the quarterly (Mar. 2024) 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.
Kangda New Materials (Group) Co (SZSE:002669) 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, Kangda New Materials (Group) Co's WACC % is 10.28%. Kangda New Materials (Group) Co's ROIC % is 1.72% (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.
Kangda New Materials (Group) Co ROIC % Related Terms
Thank you for viewing the detailed overview of Kangda New Materials (Group) Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kangda New Materials (Group) Co (SZSE:002669) Business Description
Shanghai Kangda New Materials Co Ltd is mainly engaged in the research, development, production, and sale of adhesive and sealant products. The company provides more than 200 kinds of products, including epoxy adhesive, polyurethane adhesive, acrylate AB adhesive (SGA), cyanoacrylate adhesive, UV curing adhesive, silicon rubber, anaerobic adhesive, butyl hot melt adhesive, industrial repair putty, spray polyurea and others. The products are widely used in the fields of loudspeaker assembling, energy power plants, transportation, anti-corrosion, ports and mines, military equipment, mechanical equipment, electronic appliances, and construction reinforcement.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SZSE:002669 has been successfully added to your 