Selangor Properties Berhad (Selangor Properties Berhad) ROC % : 5.43% (As of Jan. 2019)

Selangor Properties Berhad ROC % Chart

Selangor Properties Berhad Annual Data
	Trend	Oct09	Oct10	Oct11	Oct12	Oct13	Oct14	Oct15	Oct16	Oct17	Oct18
ROC %		Get a 7-Day Free Trial					11.37	29.58	4.30	5.14	-0.22

Selangor Properties Berhad Quarterly Data
	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19
ROC %	Get a 7-Day Free Trial															-8.21	1.95	7.39	-0.40	5.43

Selangor Properties Berhad ROC % Calculation

Selangor Properties Berhad's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2018 is calculated as:

where

Selangor Properties Berhad's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2019 is calculated as:

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2019) 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.

Selangor Properties Berhad  (OTCPK:SGPBY) 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, Selangor Properties Berhad's WACC % is 0.00%. Selangor Properties Berhad's ROC % is 4.13% (calculated using TTM income statement data). Selangor Properties Berhad generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Selangor Properties Berhad ROC % Related Terms

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

Selangor Properties Berhad (Selangor Properties Berhad) Business Description