WS-SK Target Group (HKSE:08427) ROC % : 0.00% (As of Nov. 2024)

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What is WS-SK Target 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 %. WS-SK Target Group's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was 0.00%.

As of today (2025-03-30), WS-SK Target Group's WACC % is 5.17%. WS-SK Target Group's ROC % is 1.50% (calculated using TTM income statement data). WS-SK Target Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

WS-SK Target Group ROC % Historical Data

The historical data trend for WS-SK Target 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.

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WS-SK Target Group ROC % Chart

WS-SK Target Group Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

ROC %

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-24.15

-23.32

-16.50

-0.10

0.18

WS-SK Target Group Quarterly Data
	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	May24	Nov24
ROC %	Get a 7-Day Free Trial															104.27	5.25	2.16	-	-

WS-SK Target Group ROC % Calculation

WS-SK Target Group's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

	ROC % (A: May. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2023 )	+	Invested Capital (A: May. 2024 ))	/ count )
=	0.59 * ( 1 - 91.34% )	/	( (26.951	+	29.577)	/ 2 )
=	0.051094	/	28.264
=	0.18 %

where

	Invested Capital		(A: May. 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	))
=	87.987	-	12.273	-	( 48.763	-	max(0, 20.271	-	73.1	+	48.763	))
=	26.951

	Invested Capital		(A: May. 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	))
=	83.832	-	7.489	-	( 46.766	-	max(0, 23.546	-	70.57	+	46.766	))
=	29.577

WS-SK Target Group's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (29.577	+	40.671)	/ 2 )
=	0	/	35.124
=	0.00 %

where

	Invested Capital		(Q: May. 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	))
=	83.832	-	7.489	-	( 46.766	-	max(0, 23.546	-	70.57	+	46.766	))
=	29.577

	Invested Capital		(Q: Nov. 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	))
=	87.951	-	6.169	-	( 41.111	-	max(0, 20.8	-	70.522	+	41.111	))
=	40.671

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

WS-SK Target Group (HKSE:08427) 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, WS-SK Target Group's WACC % is 5.17%. WS-SK Target Group's ROC % is 1.50% (calculated using TTM income statement data). WS-SK Target 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.

WS-SK Target Group ROC % Related Terms

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WS-SK Target Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WS-SK Target Group Ltd (HKSE:08427) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

No. 18, Jalan LP 2A/2, Taman Lestari Perdana, Darul Ehsan, Seri Kembangan, SGR, MYS, 43300

Website

https://www.sktargetgroup.com

WS-SK Target Group Ltd formerly, SK Target Group Ltd is an investment holding company. The principal activities of the company are manufacturing and trading of precast concrete junction boxes, trading of accessories and pipes and provision of mobile crane rental and ancillary services in Malaysia, sourcing service of materials in Hong Kong. The company has two segments: Manufacturing and trading which involves manufacturing and trading of precast concrete junction boxes; and Other building materials and services which involves trading of accessories and pipes and provision of mobile crane rental and ancillary services; Geographically, it derives a majority of revenue from Malaysia.

Executives

Cheng Lai Wah Christina	2202 Interest of your spouse
Greater Elite Holdings Limited	2101 Beneficial owner
Law Fung Yuen Paul	2201 Interest of corporation controlled by you
Woon Sow Sum	2202 Interest of your spouse
Loh Swee Keong	2201 Interest of corporation controlled by you
Merchant World Investments Limited	2101 Beneficial owner
Lei Meng Fong	2101 Beneficial owner
Cheng Chek Kay	2101 Beneficial owner
Choy Sheung Ki Gary	2101 Beneficial owner

WS-SK Target Group Headlines

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