Zen Tech International Bhd (XKLS:0094) ROC % : -5.43% (As of Dec. 2024)

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What is Zen Tech International Bhd 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 %. Zen Tech International Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -5.43%.

As of today (2025-03-25), Zen Tech International Bhd's WACC % is 18.57%. Zen Tech International Bhd's ROC % is -19.35% (calculated using TTM income statement data). Zen Tech International Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zen Tech International Bhd ROC % Historical Data

The historical data trend for Zen Tech International Bhd'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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Zen Tech International Bhd ROC % Chart

Zen Tech International Bhd Annual Data

Trend

Jul12

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Jun22

Jun23

Jun24

ROC %

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-33.52

-43.90

-14.23

-38.00

-17.61

Zen Tech International Bhd Quarterly Data
	Jul19	Oct19	Apr20	Jul20	Oct20	Apr21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-5.56	-4.80	-51.60	-14.64	-5.43

Zen Tech International Bhd ROC % Calculation

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

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-11.24 * ( 1 - -0.48% )	/	( (65.169	+	63.119)	/ 2 )
=	-11.293952	/	64.144
=	-17.61 %

where

	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	))
=	75.955	-	9.746	-	( 1.04	-	max(0, 14.295	-	16.653	+	1.04	))
=	65.169

	Invested Capital		(A: 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	))
=	74.677	-	11.153	-	( 0.405	-	max(0, 15.845	-	22.39	+	0.405	))
=	63.119

Zen Tech International Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-2.772 * ( 1 - -15.24% )	/	( (59.137	+	58.52)	/ 2 )
=	-3.1944528	/	58.8285
=	-5.43 %

where

	Invested Capital		(Q: Sep. 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	))
=	73.364	-	13.488	-	( 0.739	-	max(0, 17.061	-	21.382	+	0.739	))
=	59.137

	Invested Capital		(Q: Dec. 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	))
=	72.223	-	12.769	-	( 0.934	-	max(0, 16.812	-	21.551	+	0.934	))
=	58.52

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

Zen Tech International Bhd (XKLS:0094) 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, Zen Tech International Bhd's WACC % is 18.57%. Zen Tech International Bhd's ROC % is -19.35% (calculated using TTM income statement data). Zen Tech International Bhd 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.

Zen Tech International Bhd ROC % Related Terms

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Zen Tech International Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Zen Tech International Bhd (XKLS:0094) » Definitions » ROC %

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Traded in Other Exchanges

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Address

53-6 The Boulevard, Mid Valley City, Unit No., Lingkaran Syed Putra, Kuala Lumpur, SGR, MYS, 59200

Website

https://www.ztech.com.my

Zen Tech International Bhd is a is Malaysia-based investment holding company. The company and its subsidiaries are predominantly engaged in software development, system integration, IT management consulting, and other related professional services. segments, The company operates in three business segments namely, the E-Commerce, which comprises of software development and system integration solutions; the Gloves segment, which comprises the manufacturing of rubber gloves, and the Corporate segment, which comprises of investment holdings and other related services. Substantial portion of its overall revenue is generated from the Gloves segment and majority of its revenue is generated from the Malaysian market.

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