SMTrack Bhd (XKLS:0169) ROC % : -88.04% (As of Sep. 2024)

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What is SMTrack 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 %. SMTrack Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -88.04%.

As of today (2024-12-13), SMTrack Bhd's WACC % is 18.54%. SMTrack Bhd's ROC % is -23.70% (calculated using TTM income statement data). SMTrack Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SMTrack Bhd ROC % Historical Data

The historical data trend for SMTrack 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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SMTrack Bhd ROC % Chart

SMTrack Bhd Annual Data

Trend

Sep10

Sep11

Sep12

Sep13

Mar15

Jul16

Jul17

Jul18

Jul19

ROC %

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-74.87

-71.38

-35.85

-14.35

SMTrack Bhd Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Oct21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															5.76	0.71	-3.05	-5.03	-88.04

SMTrack Bhd ROC % Calculation

SMTrack Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2019 is calculated as:

	ROC % (A: Jul. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2018 )	+	Invested Capital (A: Jul. 2019 ))	/ count )
=	-1.774 * ( 1 - 0% )	/	( (12.899	+	11.822)	/ 2 )
=	-1.774	/	12.3605
=	-14.35 %

where

	Invested Capital		(A: Jul. 2018 )
=	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	))
=	14.451	-	1.531	-	( 0.021	-	max(0, 1.756	-	9.31	+	0.021	))
=	12.899

	Invested Capital		(A: Jul. 2019 )
=	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	))
=	14.302	-	2.433	-	( 0.047	-	max(0, 2.766	-	9.229	+	0.047	))
=	11.822

SMTrack Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-81.54 * ( 1 - -1.68% )	/	( (101.621	+	86.722)	/ 2 )
=	-82.909872	/	94.1715
=	-88.04 %

where

	Invested Capital		(Q: Mar. 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	))
=	118.145	-	17.536	-	( 1.428	-	max(0, 27.651	-	26.639	+	1.428	))
=	101.621

	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	))
=	108.477	-	21.421	-	( 0.334	-	max(0, 30.325	-	35.526	+	0.334	))
=	86.722

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

SMTrack Bhd (XKLS:0169) 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, SMTrack Bhd's WACC % is 18.54%. SMTrack Bhd's ROC % is -23.70% (calculated using TTM income statement data). SMTrack 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.

SMTrack Bhd ROC % Related Terms

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SMTrack Bhd Business Description

Industry

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Address

Unit 29-7, 7th Floor, The Bouvelard, Mid Valley City, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 59200

Website

http://www.smtrackberhad.my

SMTrack Bhd is engaged in a track and trace solutions provider that utilizes Radio Frequency Identification (RFID). It involves the design, deployment, and distribution of radiofrequency identity tags and other tagging solutions using information technology. It also offers the provision of training, maintenance, and consultancy services. The company is engaged in Investment holding and others segment, Delivery segment and Beauty and wellness segment. It derives majority of its revenues from the Investment holding and others segment and has operations spread across Malaysia.

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