Metasurface Technologies Holdings (HKSE:08637) ROC % : 5.39% (As of Dec. 2023)

View and export this data going back to 2024. Start your Free Trial

What is Metasurface Technologies Holdings 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 %. Metasurface Technologies Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 5.39%.

As of today (2024-12-12), Metasurface Technologies Holdings's WACC % is 5.80%. Metasurface Technologies Holdings's ROC % is 5.39% (calculated using TTM income statement data). Metasurface Technologies Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Metasurface Technologies Holdings ROC % Historical Data

The historical data trend for Metasurface Technologies Holdings'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.

Metasurface Technologies Holdings ROC % Chart

Metasurface Technologies Holdings Annual Data

Trend

Dec22

Dec23

ROC %

8.33

5.39

Metasurface Technologies Holdings Semi-Annual Data
	Dec22	Dec23
ROC %	8.33	5.39

Metasurface Technologies Holdings ROC % Calculation

Metasurface Technologies Holdings'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 )
=	24.512 * ( 1 - 31.72% )	/	( (318.062	+	303.046)	/ 2 )
=	16.7367936	/	310.554
=	5.39 %

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	))
=	399.729	-	58.065	-	( 25.295	-	max(0, 107.14	-	130.742	+	25.295	))
=	318.062

	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	))
=	409.573	-	52.443	-	( 54.084	-	max(0, 91.547	-	149.589	+	54.084	))
=	303.046

Metasurface Technologies Holdings'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: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	24.512 * ( 1 - 31.72% )	/	( (318.062	+	303.046)	/ 2 )
=	16.7367936	/	310.554
=	5.39 %

where

	Invested Capital		(Q: 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	))
=	399.729	-	58.065	-	( 25.295	-	max(0, 107.14	-	130.742	+	25.295	))
=	318.062

	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	))
=	409.573	-	52.443	-	( 54.084	-	max(0, 91.547	-	149.589	+	54.084	))
=	303.046

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

Metasurface Technologies Holdings (HKSE:08637) 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, Metasurface Technologies Holdings's WACC % is 5.80%. Metasurface Technologies Holdings's ROC % is 5.39% (calculated using TTM income statement data). Metasurface Technologies Holdings 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.

Metasurface Technologies Holdings ROC % Related Terms

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

Metasurface Technologies Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Metasurface Technologies Holdings Ltd (HKSE:08637) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 43 Tuas View Circuit, Singapore, SGP, 637360

Website

https://www.metatechnologies.com.sg

Metasurface Technologies Holdings Ltd is a precision engineering services provider in Singapore. The Group considers the business from three segments: 1) Precision machining is a machining process of removing materials from a workpiece with standard for high accuracy to create parts and components with tight of tolerance. 2) Precision welding is a process which involves the use of weldment equipment and specialised welding technique on a workpiece in a very precise and controlled fashion. 3) Sale of laser diodes (Discontinued operation).

Metasurface Technologies Holdings Headlines

No Headlines