Cuscapi Bhd (XKLS:0051) ROC % : 8.94% (As of Sep. 2023)

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What is Cuscapi Bhd 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 %. Cuscapi Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 8.94%.

As of today (2024-05-25), Cuscapi Bhd's WACC % is 6.63%. Cuscapi Bhd's ROC % is -2.68% (calculated using TTM income statement data). Cuscapi Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cuscapi Bhd ROC % Historical Data

The historical data trend for Cuscapi Bhd'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.

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Cuscapi Bhd ROC % Chart

Cuscapi Bhd Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Jun20

Jun21

ROC %

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-72.73

-44.73

-35.10

Cuscapi Bhd Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															-24.12	-7.40	-8.18	-10.80	8.94

Cuscapi Bhd ROC % Calculation

Cuscapi Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2021 is calculated as:

	ROC % (A: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2020 )	+	Invested Capital (A: Jun. 2021 ))	/ count )
=	-14.583 * ( 1 - -0.45% )	/	( (43.607	+	39.868)	/ 2 )
=	-14.6486235	/	41.7375
=	-35.10 %

where

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	81.605	-	26.17	-	( 16.481	-	max(0, 27.144	-	38.972	+	16.481	))
=	43.607

	Invested Capital		(A: Jun. 2021 )
=	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	))
=	69.793	-	24.331	-	( 16.768	-	max(0, 30.654	-	36.248	+	16.768	))
=	39.868

Cuscapi Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	4.832 * ( 1 - 3.12% )	/	( (53.56	+	51.184)	/ 2 )
=	4.6812416	/	52.372
=	8.94 %

where

	Invested Capital		(Q: Mar. 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	))
=	58.266	-	9.461	-	( 1.218	-	max(0, 10.556	-	5.801	+	1.218	))
=	53.56

	Invested Capital		(Q: Sep. 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	))
=	61.752	-	10.013	-	( 1.02	-	max(0, 11.041	-	11.596	+	1.02	))
=	51.184

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Cuscapi Bhd (XKLS:0051) 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, Cuscapi Bhd's WACC % is 6.63%. Cuscapi Bhd's ROC % is -2.68% (calculated using TTM income statement data). Cuscapi Bhd 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.

Cuscapi Bhd ROC % Related Terms

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Cuscapi Bhd (XKLS:0051) Business Description

Industry

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Address

No. 8, Jalan Damansara, Level 27 & 28, Block N, Empire City Damansara, PJU 8, Petaling Jaya, SGR, MYS, 47820

Website

https://www.cuscapi.com

Cuscapi Bhd is an investment holding company engaged in the provision of restaurant management solutions and offers a comprehensive range of integrated solutions for the industry. It offers business management solutions, information technology security solutions, consulting services and contact centre outsourcing services for businesses across various industries, including retail, hospitality, and automotive. The company's segments include geographic locations such as Malaysia, South East Asia and the People's Republic of China, and business units, such as Operational Cost Centre and Group Corporate. It derives a majority of revenue from the Malaysia region.

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