Murray And Roberts Holdings (JSE:MUR) ROC % : -5.99% (As of Dec. 2023)

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What is Murray And Roberts 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 %. Murray And Roberts Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -5.99%.

As of today (2024-06-20), Murray And Roberts Holdings's WACC % is 13.77%. Murray And Roberts Holdings's ROC % is 3.66% (calculated using TTM income statement data). Murray And Roberts Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Murray And Roberts Holdings ROC % Historical Data

The historical data trend for Murray And Roberts 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.

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Murray And Roberts Holdings ROC % Chart

Murray And Roberts Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-0.53

0.75

1.11

Murray And Roberts Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-	-	3.59	0.06	-5.99

Murray And Roberts Holdings ROC % Calculation

Murray And Roberts Holdings'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 )
=	90.6 * ( 1 - -60.49% )	/	( (18505.9	+	7746)	/ 2 )
=	145.40394	/	13125.95
=	1.11 %

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	))
=	20302.7	-	4136.5	-	( 2005.9	-	max(0, 13199.8	-	10860.1	+	2005.9	))
=	18505.9

	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	))
=	8387.3	-	1203.9	-	( 1253.1	-	max(0, 5466.1	-	4903.5	+	1253.1	))
=	7746

Murray And Roberts 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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	206 * ( 1 - 289.29% )	/	( (7746	+	5268)	/ 2 )
=	-389.9374	/	6507
=	-5.99 %

where

	Invested Capital		(Q: 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	))
=	8387.3	-	1203.9	-	( 1253.1	-	max(0, 5466.1	-	4903.5	+	1253.1	))
=	7746

	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	))
=	7927	-	2720	-	( 1143	-	max(0, 5619	-	5558	+	1143	))
=	5268

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

Murray And Roberts Holdings (JSE:MUR) 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, Murray And Roberts Holdings's WACC % is 13.77%. Murray And Roberts Holdings's ROC % is 3.66% (calculated using TTM income statement data). Murray And Roberts 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.

Murray And Roberts Holdings ROC % Related Terms

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Murray And Roberts Holdings (JSE:MUR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Murray And Roberts Holdings Ltd (JSE:MUR) » Definitions » ROC %

Comparable Companies

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Address

22 Skeen Boulevard, Douglas Roberts Centre, Bedfordview, GT, ZAF, 2007

Website

https://www.murrob.com

Murray And Roberts Holdings Ltd is an investment holding company that provides engineering and construction services. The company's operating segment includes Bombela, Power, Industrial & Water, Mining, and Corporate & Properties. It generates maximum revenue from the Mining segment. Its geographical segments include South Africa, Rest of Africa, Australasia & South East Asia, and North America & other, which generates the majority of revenue. The mining segment comprises the following businesses: Murray & Roberts Cementation (Johannesburg-based); Cementation Canada (North Bay-based); Cementation USA (Salt Lake City-based) and Cementation Sudamerica (Santiago-based).