Cloudpoint Technology Bhd (XKLS:0277) ROC % : 53.28% (As of Dec. 2023)

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What is Cloudpoint Technology 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 %. Cloudpoint Technology Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 53.28%.

As of today (2024-05-23), Cloudpoint Technology Bhd's WACC % is 10.42%. Cloudpoint Technology Bhd's ROC % is 34.87% (calculated using TTM income statement data). Cloudpoint Technology 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.

Cloudpoint Technology Bhd ROC % Historical Data

The historical data trend for Cloudpoint Technology 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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Cloudpoint Technology Bhd ROC % Chart

Cloudpoint Technology Bhd Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

60.52

75.45

81.88

52.75

38.95

Cloudpoint Technology Bhd Quarterly Data
	Dec19	Dec20	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial				-	83.76	49.86	40.50	53.28

Cloudpoint Technology Bhd ROC % Calculation

Cloudpoint Technology 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 )
=	20.903 * ( 1 - 26.61% )	/	( (35.697	+	43.082)	/ 2 )
=	15.3407117	/	39.3895
=	38.95 %

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	))
=	66.579	-	19.204	-	( 11.678	-	max(0, 45.697	-	61.897	+	11.678	))
=	35.697

	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	))
=	111.683	-	17.598	-	( 51.003	-	max(0, 40.669	-	103.904	+	51.003	))
=	43.082

Cloudpoint Technology Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	26.052 * ( 1 - 24.57% )	/	( (30.678	+	43.082)	/ 2 )
=	19.6510236	/	36.88
=	53.28 %

where

	Invested Capital		(Q: Sep. 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	))
=	95.341	-	10.861	-	( 53.802	-	max(0, 24.629	-	90.522	+	53.802	))
=	30.678

	Invested Capital		(Q: 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	))
=	111.683	-	17.598	-	( 51.003	-	max(0, 40.669	-	103.904	+	51.003	))
=	43.082

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Cloudpoint Technology Bhd (XKLS:0277) 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, Cloudpoint Technology Bhd's WACC % is 10.42%. Cloudpoint Technology Bhd's ROC % is 34.87% (calculated using TTM income statement data). Cloudpoint Technology 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.

Cloudpoint Technology Bhd ROC % Related Terms

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Cloudpoint Technology Bhd (XKLS:0277) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cloudpoint Technology Bhd (XKLS:0277) » Definitions » ROC %

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Traded in Other Exchanges

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Address

No. 2, Jalan Solaris, Unit J-6-13, Block J, Solaris Mont Kiara, Mont Kiara, Kuala Lumpur, SGR, MYS, 50480

Website

https://www.cloudpoint-technology.com

Cloudpoint Technology Bhd is principally an investment holding company. Through Its subsidiary, CSSB, it is principally engaged in the provision of IT solutions comprising enterprise and data centre networking, cybersecurity solutions, professional IT services as well as cloud services and software applications. The company implements solutions and provides Its services mainly to large enterprises, particularly companies in the financial services, insurance, telecommunications industries, and other technology service providers in Malaysia. It also provides our solutions to multinational companies to cater to their operations based in Malaysia.

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