IOI Bhd (XKLS:1961) ROC % : 7.76% (As of Dec. 2023)

View and export this data going back to 1980. Start your Free Trial

What is IOI 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 %. IOI Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 7.76%.

As of today (2024-04-29), IOI Bhd's WACC % is 11.72%. IOI Bhd's ROC % is 4.72% (calculated using TTM income statement data). IOI Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

IOI Bhd ROC % Historical Data

The historical data trend for IOI 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.

IOI Bhd ROC % Chart

IOI Bhd Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

Get a 7-Day Free Trial

2.65

5.44

8.49

14.16

6.82

IOI Bhd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															16.63	4.65	0.60	6.03	7.76

IOI Bhd ROC % Calculation

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

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	1399.9 * ( 1 - 25.95% )	/	( (15643.2	+	14759.9)	/ 2 )
=	1036.62595	/	15201.55
=	6.82 %

where

	Invested Capital		(A: Jun. 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	))
=	19167.8	-	910.7	-	( 2613.9	-	max(0, 3751.6	-	6679.4	+	2613.9	))
=	15643.2

	Invested Capital		(A: Jun. 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	))
=	17581.9	-	519.6	-	( 2302.4	-	max(0, 1675.5	-	4926.3	+	2302.4	))
=	14759.9

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

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1408.8 * ( 1 - 18.86% )	/	( (14644.6	+	14801.6)	/ 2 )
=	1143.10032	/	14723.1
=	7.76 %

where

	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	))
=	17325.4	-	692.4	-	( 1988.4	-	max(0, 1636.2	-	4603.7	+	1988.4	))
=	14644.6

	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	))
=	17628.6	-	698.9	-	( 2128.1	-	max(0, 1619.7	-	4762.9	+	2128.1	))
=	14801.6

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

IOI Bhd (XKLS:1961) 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, IOI Bhd's WACC % is 11.72%. IOI Bhd's ROC % is 4.72% (calculated using TTM income statement data). IOI 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.

IOI Bhd ROC % Related Terms

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

IOI Bhd (XKLS:1961) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » IOI Corp Bhd (XKLS:1961) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Level 29,IOI City Tower 2, Lebuh IRC, IOI Resort City, Wilayah Persekutuan, Putrajaya, SGR, MYS, 62502

Website

https://www.ioigroup.com

IOI Corp Bhd is a palm oil producer. Its operations include oil palm plantations and Resource-based manufacturing divisions. The plantations are monitored to check oil palm nutrient status, seed breeding, ground conditions, and other data sources to improve the efficiency of each estate. The majority of revenue from the plantations comes from sales to its manufacturing divisions. Once the oil reaches the manufacturing divisions, it can be refined to create snack ingredients, soap, plastics, fatty acids, and other oils. The products are exported worldwide to many different customers, including some multinational corporations.

IOI Bhd (XKLS:1961) Headlines

No Headlines