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ZBAO (Zhibao Technology) ROIC % : -26.14% (As of Dec. 2023)


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What is Zhibao Technology ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zhibao Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -26.14%.

As of today (2024-10-31), Zhibao Technology's WACC % is 9.95%. Zhibao Technology's ROIC % is -99.08% (calculated using TTM income statement data). Zhibao Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Zhibao Technology ROIC % Historical Data

The historical data trend for Zhibao Technology's ROIC % 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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Zhibao Technology ROIC % Chart

Zhibao Technology Annual Data
Trend Jun21 Jun22
ROIC %
-55.48 23.18

Zhibao Technology Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial 28.79 18.59 29.74 -165.82 -26.14

Competitive Comparison of Zhibao Technology's ROIC %

For the Insurance Brokers subindustry, Zhibao Technology'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.


Zhibao Technology's ROIC % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Zhibao Technology's ROIC % distribution charts can be found below:

* The bar in red indicates where Zhibao Technology's ROIC % falls into.



Zhibao Technology ROIC % Calculation

Zhibao Technology's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2022 is calculated as:

ROIC % (A: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2021 ) + Invested Capital (A: Jun. 2022 ))/ count )
=1.888 * ( 1 - -17.36% )/( (10.049 + 9.066)/ 2 )
=2.2157568/9.5575
=23.18 %

where

Zhibao Technology's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-2.346 * ( 1 - 1.56% )/( (9.515 + 8.152)/ 2 )
=-2.3094024/8.8335
=-26.14 %

where

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.


Zhibao Technology  (NAS:ZBAO) 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, Zhibao Technology's WACC % is 9.95%. Zhibao Technology's ROIC % is -99.08% (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.


Zhibao Technology ROIC % Related Terms

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Zhibao Technology Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Floor 3, Building 6, Wuxing Road, Lane 727, Shanghai, CHN, 201204
Zhibao Technology Inc is a insurance technology company primarily engaged in providing digital insurance brokerage services in China. 2B2C digital embedded insurance is their innovative business model which They pioneered in China. They provide customized digital insurance solutions for B-side channels (covering a wide range of industries and organizations, including but not limited to Internet platforms, large and medium-sized enterprises, and government agencies, etc.), embedding them into the channel's existing business matrix, and providing the channel with Provide digital insurance brokerage services to C-end customers.