GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Sunzen Biotech Bhd (XKLS:0148) » Definitions » ROC %

Sunzen Biotech Bhd (XKLS:0148) ROC % : 16.07% (As of Sep. 2023)


View and export this data going back to 2008. Start your Free Trial

What is Sunzen Biotech 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 %. Sunzen Biotech Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 16.07%.

As of today (2024-04-25), Sunzen Biotech Bhd's WACC % is 6.87%. Sunzen Biotech Bhd's ROC % is 2.53% (calculated using TTM income statement data). Sunzen Biotech Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Sunzen Biotech Bhd ROC % Historical Data

The historical data trend for Sunzen Biotech 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.

* Premium members only.

Sunzen Biotech Bhd ROC % Chart

Sunzen Biotech Bhd Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.41 -23.32 -20.90 -0.52 2.94

Sunzen Biotech Bhd Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.78 -37.13 11.63 12.94 16.07

Sunzen Biotech Bhd ROC % Calculation

Sunzen Biotech Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=5.081 * ( 1 - 36.12% )/( (91.306 + 129.503)/ 2 )
=3.2457428/110.4045
=2.94 %

where

Sunzen Biotech 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: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=29.248 * ( 1 - 33.17% )/( (122.11 + 121.17)/ 2 )
=19.5464384/121.64
=16.07 %

where

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


Sunzen Biotech Bhd  (XKLS:0148) 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, Sunzen Biotech Bhd's WACC % is 6.87%. Sunzen Biotech Bhd's ROC % is 2.53% (calculated using TTM income statement data). Sunzen Biotech 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.


Sunzen Biotech Bhd ROC % Related Terms

Thank you for viewing the detailed overview of Sunzen Biotech Bhd's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sunzen Biotech Bhd (XKLS:0148) Business Description

Traded in Other Exchanges
N/A
Address
No. 11, Jalan Anggerik Mokara 31/47, Kota Kemuning, Shah Alam, SGR, MYS, 40460
Sunzen Biotech Bhd is engaged in the business of research and development of biotechnology and manufacturing and marketing of animal health products. The company operates in the business segments of Manufacturing and trading animal health products; Trading and processing of crude palm oil and related products; Traditional Chinese medicines and herbal health foods and beverages and loan financing. It generates key revenue from the Traditional Chinese medicines and herbal health foods and beverages segment.

Sunzen Biotech Bhd (XKLS:0148) Headlines

No Headlines