ECA Integrated Solution Bhd (XKLS:0267) ROC % : -64.05% (As of Oct. 2024)

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What is ECA Integrated Solution 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 %. ECA Integrated Solution Bhd's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was -64.05%.

As of today (2025-04-05), ECA Integrated Solution Bhd's WACC % is 9.86%. ECA Integrated Solution Bhd's ROC % is -20.60% (calculated using TTM income statement data). ECA Integrated Solution Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ECA Integrated Solution Bhd ROC % Historical Data

The historical data trend for ECA Integrated Solution 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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ECA Integrated Solution Bhd ROC % Chart

ECA Integrated Solution Bhd Annual Data

Trend

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

ROC %

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91.88

65.56

28.75

33.01

-21.49

ECA Integrated Solution Bhd Quarterly Data
	Oct19	Oct20	Oct21	Jun22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROC %	Get a 7-Day Free Trial								0.77	1.26	2.83	-23.23	-64.05

ECA Integrated Solution Bhd ROC % Calculation

ECA Integrated Solution Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2024 is calculated as:

	ROC % (A: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2023 )	+	Invested Capital (A: Oct. 2024 ))	/ count )
=	-7.398 * ( 1 - -6.46% )	/	( (36.438	+	36.858)	/ 2 )
=	-7.8759108	/	36.648
=	-21.49 %

where

	Invested Capital		(A: Oct. 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	))
=	71.409	-	2.422	-	( 32.549	-	max(0, 6.826	-	59.648	+	32.549	))
=	36.438

	Invested Capital		(A: Oct. 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	))
=	66.338	-	2.069	-	( 27.411	-	max(0, 7.427	-	54.555	+	27.411	))
=	36.858

ECA Integrated Solution Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2024 is calculated as:

	ROC % (Q: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2024 )	+	Invested Capital (Q: Oct. 2024 ))	/ count )
=	-21.72 * ( 1 - -9.99% )	/	( (37.74	+	36.858)	/ 2 )
=	-23.889828	/	37.299
=	-64.05 %

where

	Invested Capital		(Q: Jul. 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	))
=	72.431	-	2.834	-	( 31.857	-	max(0, 7.547	-	60.225	+	31.857	))
=	37.74

	Invested Capital		(Q: Oct. 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	))
=	66.338	-	2.069	-	( 27.411	-	max(0, 7.427	-	54.555	+	27.411	))
=	36.858

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

ECA Integrated Solution Bhd (XKLS:0267) 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, ECA Integrated Solution Bhd's WACC % is 9.86%. ECA Integrated Solution Bhd's ROC % is -20.60% (calculated using TTM income statement data). ECA Integrated Solution 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.

ECA Integrated Solution Bhd ROC % Related Terms

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ECA Integrated Solution Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ECA Integrated Solution Bhd (XKLS:0267) » Definitions » ROC %

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Address

Plot 248, Lorong Perindustrian Bukit Minyak 16, Kawasan Perindustrian Bukit Minyak, Pulau Pinang, Simpang Ampat, PNG, MYS, 14100

Website

http://www.eca.com.my

ECA Integrated Solution Bhd is an automated manufacturing solution provider, and is principally involved in the provision of integrated production systems and standalone automated equipment. The company is a recognized designer, developer and manufacturer of automation solutions. Company segments includes: Investment Holdings and Manufacturing. The clients are from variety of industries, ranging from semiconductor to non-semiconductor all around the world from continents such Malaysia, North America, Europe, and Rest of Asia, majority revenue from Malaysia, and North America.

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