GURUFOCUS.COM » STOCK LIST » Technology » Software » ARB IOT Group Ltd (NAS:ARBB) » Definitions » ROC %

ARBB (ARB IOT Group) ROC % : -5.11% (As of Jun. 2024)


View and export this data going back to 2023. Start your Free Trial

What is ARB IOT Group 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 %. ARB IOT Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -5.11%.

As of today (2024-12-13), ARB IOT Group's WACC % is 10.30%. ARB IOT Group's ROC % is -22.00% (calculated using TTM income statement data). ARB IOT Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ARB IOT Group ROC % Historical Data

The historical data trend for ARB IOT Group'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.

ARB IOT Group ROC % Chart

ARB IOT Group Annual Data
Trend Jun21 Jun22 Jun23 Jun24
ROC %
8.06 38.98 8.77 -19.56

ARB IOT Group Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial 29.64 3.23 14.86 -40.17 -5.11

ARB IOT Group ROC % Calculation

ARB IOT Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=-14.249 * ( 1 - 16.52% )/( (66.088 + 55.519)/ 2 )
=-11.8950652/60.8035
=-19.56 %

where

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))
=85.463 - 12.582 - ( 6.793 - max(0, 12.608 - 36.113+6.793))
=66.088

Invested Capital(A: Jun. 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))
=57.949 - 0.309 - ( 2.121 - max(0, 0.337 - 15.016+2.121))
=55.519

ARB IOT Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-1.408 * ( 1 - -77.47% )/( (42.225 + 55.519)/ 2 )
=-2.4987776/48.872
=-5.11 %

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))
=57.701 - 34.827 - ( 6.458 - max(0, 34.853 - 15.502+6.458))
=42.225

Invested Capital(Q: Jun. 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))
=57.949 - 0.309 - ( 2.121 - max(0, 0.337 - 15.016+2.121))
=55.519

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.

ARB IOT Group  (NAS:ARBB) 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, ARB IOT Group's WACC % is 10.30%. ARB IOT Group's ROC % is -22.00% (calculated using TTM income statement data). ARB IOT Group 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.

ARB IOT Group ROC % Related Terms

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

ARB IOT Group Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » ARB IOT Group Ltd (NAS:ARBB) » Definitions » ROC %
Comparable Companies
CLPS CTM HWNI DTST BTCM WYY SEAV JFU TSSI SUIC ACN NSE:TCS IBM FI NSE:INFY NSE:HCLTECH CTSH XPAR:CAP FIS CDW
Traded in Other Exchanges
N/A
Address
10 Marina Boulevard, Level 39, Financial Centre Tower 2, Marina Bay, SGP, 018983
Website
https://www.arbiotgroup.com
ARB IOT Group Ltd is engaged in provision of hardware and software of Internet of Things solutions to meet customers' demand in four business lines, which are IoT Smart Home and Buildings, IoT Smart Agriculture, IoT System Development, and IoT Gadget Distribution. The company delivers holistic solutions with full turnkey deployment from designing, installation, testing, pre-commissioning, and commissioning of various IoT systems and devices as well as integration of automated systems, including installation of wire and wireless and mechatronic works. The company has two operating segments: Internet of Things ('IoT'), Investment holding and others. It earns its maximum profit from the Internet of Things (IoT) segment.