Mercury Securities Group Bhd (XKLS:0285) ROC % : 2.79% (As of Oct. 2023)

View and export this data going back to 2023. Start your Free Trial

What is Mercury Securities 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 %. Mercury Securities Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was 2.79%.

As of today (2024-05-26), Mercury Securities Group Bhd's WACC % is 10.46%. Mercury Securities Group Bhd's ROC % is 5.16% (calculated using TTM income statement data). Mercury Securities Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mercury Securities Group Bhd ROC % Historical Data

The historical data trend for Mercury Securities 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.

* Premium members only.

Mercury Securities Group Bhd ROC % Chart

Mercury Securities Group Bhd Annual Data

Trend

Oct19

Oct20

Oct21

Oct22

Oct23

ROC %

5.41

12.61

21.43

15.09

4.97

Mercury Securities Group Bhd Semi-Annual Data
	Oct19	Oct20	Oct21	Apr22	Oct22	Apr23	Oct23
ROC %	Get a 7-Day Free Trial			-	19.67	11.00	8.10	2.79

Mercury Securities Group Bhd ROC % Calculation

Mercury Securities Group Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2023 is calculated as:

	ROC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	6.551 * ( 1 - 32.7% )	/	( (86.978	+	90.404)	/ 2 )
=	4.408823	/	88.691
=	4.97 %

where

	Invested Capital		(A: Oct. 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	))
=	145.599	-	12.068	-	( 46.553	-	max(0, 19.639	-	121.283	+	46.553	))
=	86.978

	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	))
=	185.473	-	11.454	-	( 83.615	-	max(0, 13.638	-	160.459	+	83.615	))
=	90.404

Mercury Securities Group Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	3.99 * ( 1 - 40.71% )	/	( (79.021	+	90.404)	/ 2 )
=	2.365671	/	84.7125
=	2.79 %

where

	Invested Capital		(Q: Apr. 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	))
=	177.542	-	11.4	-	( 87.121	-	max(0, 13.704	-	151.939	+	87.121	))
=	79.021

	Invested Capital		(Q: 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	))
=	185.473	-	11.454	-	( 83.615	-	max(0, 13.638	-	160.459	+	83.615	))
=	90.404

Note: The Operating Income data used here is two times the semi-annual (Oct. 2023) data.

Mercury Securities Group Bhd (XKLS:0285) 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, Mercury Securities Group Bhd's WACC % is 10.46%. Mercury Securities Group Bhd's ROC % is 5.16% (calculated using TTM income statement data). Mercury Securities Group 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.

Mercury Securities Group Bhd ROC % Related Terms

Thank you for viewing the detailed overview of Mercury Securities Group Bhd's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Mercury Securities Group Bhd (XKLS:0285) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Mercury Securities Group Bhd (XKLS:0285) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2 Jalan Solaris, L-7-2, Solaris Mont Kiara, Kuala Lumpur, MYS, 50480

Website

https://www.mercurysecurities.com.my

Mercury Securities Group Bhd is an investment holding company and through its subsidiaries, It is principally engaged in stockbroking, corporate finance advisory and other related businesses as well as the provision of nominee and custodian services. Mercury provides stockbroking services comprising execution of trades of securities listed on Bursa Securities and foreign stock exchanges mainly in Singapore, Hong Kong and the USA, as well as margin financing facility services, nominees, custodians and related services. It is also licensed by the Securities Commission Malaysia to undertake regulated corporate finance activities as a Principal or Independent Advisor.

Mercury Securities Group Bhd (XKLS:0285) Headlines

No Headlines