Manufacturing Integration Technology (SGX:M11) ROC % : -35.08% (As of Jun. 2024)

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What is Manufacturing Integration Technology 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 %. Manufacturing Integration Technology's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -35.08%.

As of today (2024-12-13), Manufacturing Integration Technology's WACC % is 5.08%. Manufacturing Integration Technology's ROC % is -39.04% (calculated using TTM income statement data). Manufacturing Integration Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Manufacturing Integration Technology ROC % Historical Data

The historical data trend for Manufacturing Integration Technology'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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Manufacturing Integration Technology ROC % Chart

Manufacturing Integration Technology Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-32.82

-27.40

-29.39

-25.72

-37.06

Manufacturing Integration Technology Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-22.95	-29.18	-37.48	-41.95	-35.08

Manufacturing Integration Technology ROC % Calculation

Manufacturing Integration Technology'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 )
=	-4.267 * ( 1 - 0% )	/	( (10.633	+	12.397)	/ 2 )
=	-4.267	/	11.515
=	-37.06 %

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	))
=	17.176	-	2.244	-	( 4.299	-	max(0, 3.636	-	8.714	+	4.299	))
=	10.633

	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	))
=	14.791	-	1.173	-	( 1.221	-	max(0, 4.022	-	5.917	+	1.221	))
=	12.397

Manufacturing Integration Technology'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: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-4.336 * ( 1 - 0% )	/	( (12.397	+	12.327)	/ 2 )
=	-4.336	/	12.362
=	-35.08 %

where

	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	))
=	14.791	-	1.173	-	( 1.221	-	max(0, 4.022	-	5.917	+	1.221	))
=	12.397

	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	))
=	14.208	-	1.586	-	( 0.843	-	max(0, 5.356	-	5.651	+	0.843	))
=	12.327

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

Manufacturing Integration Technology (SGX:M11) 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, Manufacturing Integration Technology's WACC % is 5.08%. Manufacturing Integration Technology's ROC % is -39.04% (calculated using TTM income statement data). Manufacturing Integration Technology 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.

Manufacturing Integration Technology ROC % Related Terms

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Manufacturing Integration Technology Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Manufacturing Integration Technology Ltd (SGX:M11) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Ang Mo Kio Avenue 5, Block 5004, No. 03-12, Techplace II, Singapore, SGP, 569872

Website

https://www.mitech-ltd.com.sg

Manufacturing Integration Technology Ltd operates as an integrated automation solution provider for the semiconductor and solar industries. The firm operates in the built-to-print segment and is mainly engaged in contract equipment manufacturing activities. The customized automation segment is engaged in designing, developing, and manufacturing automated equipment. Majority of the revenue is generated from the built-to-print segment. Geographically, its business presence is seen across the region of China, Singapore, Europe, the USA, and Asia excluding China and Singapore.

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