Vicplas International (SGX:569) ROC % : -7.76% (As of Jul. 2024)

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What is Vicplas International 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 %. Vicplas International's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -7.76%.

As of today (2024-12-12), Vicplas International's WACC % is 4.25%. Vicplas International's ROC % is -5.86% (calculated using TTM income statement data). Vicplas International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vicplas International ROC % Historical Data

The historical data trend for Vicplas International'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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Vicplas International ROC % Chart

Vicplas International Annual Data

Trend

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

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3.25

6.52

5.20

3.12

-6.02

Vicplas International Semi-Annual Data
	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
ROC %	Get a 7-Day Free Trial															3.47	3.47	2.55	-2.06	-7.76

Vicplas International ROC % Calculation

Vicplas International's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	-4.891 * ( 1 - -21.07% )	/	( (91.344	+	105.469)	/ 2 )
=	-5.9215337	/	98.4065
=	-6.02 %

where

	Invested Capital		(A: Jul. 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	))
=	119.021	-	19.111	-	( 8.566	-	max(0, 27.251	-	69.409	+	8.566	))
=	91.344

	Invested Capital		(A: Jul. 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	))
=	131.492	-	21.049	-	( 4.974	-	max(0, 41.319	-	67.369	+	4.974	))
=	105.469

Vicplas International's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-7.266 * ( 1 - -13.12% )	/	( (106.4	+	105.469)	/ 2 )
=	-8.2192992	/	105.9345
=	-7.76 %

where

	Invested Capital		(Q: Jan. 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	))
=	126.646	-	15.786	-	( 4.46	-	max(0, 31.245	-	66.928	+	4.46	))
=	106.4

	Invested Capital		(Q: Jul. 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	))
=	131.492	-	21.049	-	( 4.974	-	max(0, 41.319	-	67.369	+	4.974	))
=	105.469

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

Vicplas International (SGX:569) 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, Vicplas International's WACC % is 4.25%. Vicplas International's ROC % is -5.86% (calculated using TTM income statement data). Vicplas International 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.

Vicplas International ROC % Related Terms

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Vicplas International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Vicplas International Ltd (SGX:569) » Definitions » ROC %

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Traded in Other Exchanges

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Address

35 Joo Koon Circle, Singapore, SGP, 629110

Website

https://www.vicplas.com

Vicplas International Ltd is an investment holding company. The company is organized into two main business activities: the Pipes and Pipe Fitting segment and the Medical Devices segment, which is the key revenue driver. Pipes and Pipe Fittings segment engages in the manufacturing and distribution of plastic building products, including uPVC pipes and pipe fittings and electrical conduits. The Medical device segment is involved in the research, design, development, and manufacture of medical devices. The company generates majority of its revenue from medical devices. The company does its sales through geographical segments that include Singapore, Malaysia, Mexico, China, and the United Kingdom, of which the majority of the revenue comes from Singapore.

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