Mooreast Holdings (SGX:1V3) ROC % : -2.41% (As of Jun. 2024)

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What is Mooreast 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 %. Mooreast Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -2.41%.

As of today (2024-12-11), Mooreast Holdings's WACC % is 3.36%. Mooreast Holdings's ROC % is -1.21% (calculated using TTM income statement data). Mooreast Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mooreast Holdings ROC % Historical Data

The historical data trend for Mooreast 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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Mooreast Holdings ROC % Chart

Mooreast Holdings Annual Data

Trend

Dec20

Dec21

Dec22

ROC %

12.80

-3.69

2.67

Mooreast Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Jun24
ROC %	Get a 7-Day Free Trial			-7.21	0.81	3.69	2.22	-2.41

Mooreast Holdings ROC % Calculation

Mooreast Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	1.948 * ( 1 - 31.28% )	/	( (49.555	+	50.888)	/ 2 )
=	1.3386656	/	50.2215
=	2.67 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	76.171	-	6.372	-	( 20.244	-	max(0, 10.261	-	33.189	+	20.244	))
=	49.555

	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	))
=	74.865	-	5.002	-	( 18.975	-	max(0, 8.968	-	35.667	+	18.975	))
=	50.888

Mooreast Holdings'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: Jun. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-1.292 * ( 1 - -0.23% )	/	( (53.244	+	54.147)	/ 2 )
=	-1.2949716	/	53.6955
=	-2.41 %

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	))
=	79.126	-	6.858	-	( 19.024	-	max(0, 11.754	-	41.608	+	19.024	))
=	53.244

	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	))
=	72.002	-	3.734	-	( 14.121	-	max(0, 11.462	-	36.53	+	14.121	))
=	54.147

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

Mooreast Holdings (SGX:1V3) 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, Mooreast Holdings's WACC % is 3.36%. Mooreast Holdings's ROC % is -1.21% (calculated using TTM income statement data). Mooreast 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.

Mooreast Holdings ROC % Related Terms

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Mooreast Holdings Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

51 Shipyard Road, Mooreast Offshore Base, Singapore, SGP, 628139

Website

https://www.mooreast.com

Mooreast Holdings Ltd is a total mooring solutions specialist, serving the offshore oil and gas, marine and offshore renewable energy industries. With strong in-house capabilities in design, engineering and fabrication, the company offers a full range of mooring solutions including the design, engineering, fabrication, supply, mobilisation and logistics, installation and commissioning services for mooring systems and mooring system components as well as the provision of rigging and heavy lifting equipment.

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