Cengild Medical Bhd (XKLS:0243) ROC % : 41.34% (As of Sep. 2024)

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What is Cengild Medical 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 %. Cengild Medical Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 41.34%.

As of today (2024-12-15), Cengild Medical Bhd's WACC % is 10.06%. Cengild Medical Bhd's ROC % is 26.49% (calculated using TTM income statement data). Cengild Medical Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Cengild Medical Bhd ROC % Historical Data

The historical data trend for Cengild Medical 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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Cengild Medical Bhd ROC % Chart

Cengild Medical Bhd Annual Data

Trend

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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11.28

26.69

25.94

35.61

24.02

Cengild Medical Bhd Quarterly Data
	Jun18	Jun19	Jun20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial												51.03	44.01	41.70	-9.52	41.34

Cengild Medical Bhd ROC % Calculation

Cengild Medical 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 )
=	12.334 * ( 1 - 30.08% )	/	( (31.444	+	40.348)	/ 2 )
=	8.6239328	/	35.896
=	24.02 %

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	))
=	131.729	-	5.514	-	( 98.308	-	max(0, 11.395	-	106.166	+	98.308	))
=	31.444

	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	))
=	132.443	-	7.472	-	( 89.538	-	max(0, 14.765	-	99.388	+	89.538	))
=	40.348

Cengild Medical 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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	22.884 * ( 1 - 29.26% )	/	( (40.348	+	37.978)	/ 2 )
=	16.1881416	/	39.163
=	41.34 %

where

	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	))
=	132.443	-	7.472	-	( 89.538	-	max(0, 14.765	-	99.388	+	89.538	))
=	40.348

	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	))
=	136.338	-	15.804	-	( 88.264	-	max(0, 18.408	-	100.964	+	88.264	))
=	37.978

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

Cengild Medical Bhd (XKLS:0243) 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, Cengild Medical Bhd's WACC % is 10.06%. Cengild Medical Bhd's ROC % is 26.49% (calculated using TTM income statement data). Cengild Medical Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Cengild Medical Bhd ROC % Related Terms

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Cengild Medical Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Cengild Medical Bhd (XKLS:0243) » Definitions » ROC %

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Address

No.7, Jalan Kerinchi, Unit 2-3 & 2-4, Level 2, Nexus, Bangsar South, Kuala Lumpur, MYS, 59200

Website

https://www.cengild.com

Cengild Medical Bhd is a healthcare service provider operating a medical centre specializing in the diagnosis and treatment of gastrointestinal-related diseases, oncology, gynecology services., liver diseases, and obesity. The company operates in Malaysia and has two reportable segments, Consultant Services and Medical Management Services. A substantial portion of the overall revenue is generated from its Medical Management Services segment.

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