Infoline Tec Group Bhd (XKLS:0253) ROC % : 74.57% (As of Sep. 2024)

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What is Infoline Tec Group 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 %. Infoline Tec Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 74.57%.

As of today (2024-12-12), Infoline Tec Group Bhd's WACC % is 10.17%. Infoline Tec Group Bhd's ROC % is 43.08% (calculated using TTM income statement data). Infoline Tec Group 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.

Infoline Tec Group Bhd ROC % Historical Data

The historical data trend for Infoline Tec Group 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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Infoline Tec Group Bhd ROC % Chart

Infoline Tec Group Bhd Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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102.08

148.90

97.86

70.17

50.19

Infoline Tec Group Bhd Quarterly Data
	Dec18	Dec19	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial										53.39	79.60	4.13	14.00	74.57

Infoline Tec Group Bhd ROC % Calculation

Infoline Tec Group Bhd'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 )
=	27.306 * ( 1 - 26.26% )	/	( (27.627	+	52.614)	/ 2 )
=	20.1354444	/	40.1205
=	50.19 %

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	))
=	70.441	-	4.93	-	( 37.884	-	max(0, 18.573	-	60.239	+	37.884	))
=	27.627

	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	))
=	78.287	-	6.448	-	( 19.225	-	max(0, 15.997	-	59.062	+	19.225	))
=	52.614

Infoline Tec Group 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 )
=	50.4 * ( 1 - 22.59% )	/	( (47.831	+	56.807)	/ 2 )
=	39.01464	/	52.319
=	74.57 %

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	))
=	75.487	-	11.235	-	( 16.421	-	max(0, 18.574	-	55.358	+	16.421	))
=	47.831

	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	))
=	82.009	-	8.577	-	( 16.625	-	max(0, 17.493	-	60.468	+	16.625	))
=	56.807

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

Infoline Tec Group Bhd (XKLS:0253) 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, Infoline Tec Group Bhd's WACC % is 10.17%. Infoline Tec Group Bhd's ROC % is 43.08% (calculated using TTM income statement data). Infoline Tec Group 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.

Infoline Tec Group Bhd ROC % Related Terms

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Infoline Tec Group Bhd Business Description

Industry

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Address

No. 53-3, Jalan PJU 5/20E, Kota Damansara, Pusat Perdagangan, Petaling Jaya, SGR, MYS, 47810

Website

https://www.infolinetec.com

Infoline Tec Group Bhd is engaged in the business of investment holding. The group is organized into five reportable segments as follows: IT infrastructure solutions; Cybersecurity solutions; Managed IT services and other IT services; Trading of ancillary hardware and software; and Investment holding. It generates the majority of its revenue from the IT infrastructure solutions segment. The geographical regions include Malaysia, China, Australia, Singapore, and Others.

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