Raffles Interior (HKSE:01376) ROC % : 2.09% (As of Jun. 2024)

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What is Raffles Interior 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 %. Raffles Interior's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 2.09%.

As of today (2025-03-27), Raffles Interior's WACC % is 2.35%. Raffles Interior's ROC % is 0.04% (calculated using TTM income statement data). Raffles Interior earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Raffles Interior ROC % Historical Data

The historical data trend for Raffles Interior'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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Raffles Interior ROC % Chart

Raffles Interior Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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16.74

-33.94

-0.59

-2.48

5.65

Raffles Interior Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial								-0.50	-5.35	15.29	-5.74	2.09

Raffles Interior ROC % Calculation

Raffles Interior'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 )
=	8.865 * ( 1 - 0.15% )	/	( (167.82	+	145.672)	/ 2 )
=	8.8517025	/	156.746
=	5.65 %

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	))
=	238.855	-	47.727	-	( 23.308	-	max(0, 164.86	-	228.246	+	23.308	))
=	167.82

	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	))
=	259.269	-	43.824	-	( 99.55	-	max(0, 182.168	-	251.941	+	99.55	))
=	145.672

Raffles Interior'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 )
=	9.65 * ( 1 - 64.75% )	/	( (145.672	+	179.652)	/ 2 )
=	3.401625	/	162.662
=	2.09 %

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	))
=	259.269	-	43.824	-	( 99.55	-	max(0, 182.168	-	251.941	+	99.55	))
=	145.672

	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	))
=	254.234	-	32.842	-	( 79.516	-	max(0, 172.632	-	214.372	+	79.516	))
=	179.652

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

Raffles Interior (HKSE:01376) 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, Raffles Interior's WACC % is 2.35%. Raffles Interior's ROC % is 0.04% (calculated using TTM income statement data). Raffles Interior 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.

Raffles Interior ROC % Related Terms

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Raffles Interior Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Raffles Interior Ltd (HKSE:01376) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

59 Sungei Kadut Loop, Singapore, SGP, 729490

Website

http://www.rafflesinterior.com

Raffles Interior Ltd is a Singapore-based investment holding company. The company is principally engaged in the provision of interior fitting-out services. The company's fitting-out services include project management and construction management of the interior fitting-out project, construction and installation of interior fitting-out works, customizing, manufacturing and supply of carpentry/joinery and integral fixtures, and maintenance of the projects that it undertakes on an ad-hoc basis. The company derives its revenue from projects involving fitting-out works for office space in Singapore.

Executives

Low Lek Huat	2201 Interest of corporation controlled by you
Zhong Ji Huan Qiu Qi Ye You Xian Gong Si	2101 Beneficial owner
Union Expert Investment Holding Limited	2101 Beneficial owner
Cao Chengpeng	2201 Interest of corporation controlled by you
Sng Siew Luan Emily	2202 Interest of your spouse
Pan Lulu	2202 Interest of your spouse
Ong Poh Eng	2202 Interest of your spouse
Ng Foo Wah	2201 Interest of corporation controlled by you
Neo Bee Ling Pauline	2202 Interest of your spouse
Chua Boon Par	2201 Interest of corporation controlled by you
Low Lek Hee	2201 Interest of corporation controlled by you
Loke Yoke Mei	2202 Interest of your spouse
Lo Lek Chew	2201 Interest of corporation controlled by you
Lim Bee Peng	2202 Interest of your spouse
Leong Wai Kit	2201 Interest of corporation controlled by you

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