Nationgate Holdings Bhd (XKLS:0270) ROC % : 17.31% (As of Mar. 2024)

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What is Nationgate Holdings 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 %. Nationgate Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 17.31%.

As of today (2024-06-06), Nationgate Holdings Bhd's WACC % is 10.18%. Nationgate Holdings Bhd's ROC % is 13.94% (calculated using TTM income statement data). Nationgate Holdings Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Nationgate Holdings Bhd ROC % Historical Data

The historical data trend for Nationgate Holdings 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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Nationgate Holdings Bhd ROC % Chart

Nationgate Holdings Bhd Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

3.72

14.14

20.83

20.67

12.59

Nationgate Holdings Bhd Quarterly Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial							11.90	12.59	14.88	11.14	17.31

Nationgate Holdings Bhd ROC % Calculation

Nationgate Holdings Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	78.035 * ( 1 - 13.63% )	/	( (553.178	+	517.386)	/ 2 )
=	67.3988295	/	535.282
=	12.59 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	762.437	-	162.006	-	( 47.253	-	max(0, 449.225	-	501.384	+	47.253	))
=	553.178

	Invested Capital		(A: Dec. 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	))
=	734.854	-	151.313	-	( 66.155	-	max(0, 275.593	-	466.003	+	66.155	))
=	517.386

Nationgate Holdings Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	98.164 * ( 1 - 6.61% )	/	( (517.386	+	541.754)	/ 2 )
=	91.6753596	/	529.57
=	17.31 %

where

	Invested Capital		(Q: Dec. 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	))
=	734.854	-	151.313	-	( 66.155	-	max(0, 275.593	-	466.003	+	66.155	))
=	517.386

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	922.251	-	292.354	-	( 88.143	-	max(0, 446.282	-	627.941	+	88.143	))
=	541.754

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Nationgate Holdings Bhd (XKLS:0270) 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, Nationgate Holdings Bhd's WACC % is 10.18%. Nationgate Holdings Bhd's ROC % is 13.94% (calculated using TTM income statement data). Nationgate Holdings Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Nationgate Holdings Bhd ROC % Related Terms

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Nationgate Holdings Bhd (XKLS:0270) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Nationgate Holdings Bhd (XKLS:0270) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2005, Tingkat Perusahaan Satu, Kawasan Perindustrian Prai, Pulau Pinang, Perai, PNG, MYS, 13600

Website

http://www.nationgate.com.my

Nationgate Holdings Bhd is engaged in the assembling and testing of electronic components and products to produce completed PCBs, semi-finished sub-assemblies, and fullyassembled electronic products as well as semiconductor devices.

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