Enest Group Bhd (XKLS:03025) ROC % : 14.00% (As of Dec. 2024)

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What is Enest 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 %. Enest Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 14.00%.

As of today (2025-04-06), Enest Group Bhd's WACC % is 3.61%. Enest Group Bhd's ROC % is 15.98% (calculated using TTM income statement data). Enest 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.

Enest Group Bhd ROC % Historical Data

The historical data trend for Enest 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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Enest Group Bhd ROC % Chart

Enest Group Bhd Annual Data

Trend

Dec15

Dec16

Dec17

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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20.40

18.33

18.12

18.70

16.35

Enest Group Bhd Semi-Annual Data
	Dec16	Dec17	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial									15.36	19.02	7.94	17.80	14.00

Enest Group Bhd ROC % Calculation

Enest Group Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	9.394 * ( 1 - 15.29% )	/	( (43.572	+	53.757)	/ 2 )
=	7.9576574	/	48.6645
=	16.35 %

where

	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	))
=	49.458	-	4.563	-	( 1.323	-	max(0, 8.977	-	40.677	+	1.323	))
=	43.572

	Invested Capital		(A: Dec. 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	))
=	69.027	-	4.621	-	( 10.649	-	max(0, 16.066	-	53.448	+	10.649	))
=	53.757

Enest Group Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	8.138 * ( 1 - 8.9% )	/	( (52.117	+	53.757)	/ 2 )
=	7.413718	/	52.937
=	14.00 %

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	))
=	64.84	-	8.002	-	( 4.721	-	max(0, 18.914	-	53.967	+	4.721	))
=	52.117

	Invested Capital		(Q: Dec. 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	))
=	69.027	-	4.621	-	( 10.649	-	max(0, 16.066	-	53.448	+	10.649	))
=	53.757

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

Enest Group Bhd (XKLS:03025) 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, Enest Group Bhd's WACC % is 3.61%. Enest Group Bhd's ROC % is 15.98% (calculated using TTM income statement data). Enest 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.

Enest Group Bhd ROC % Related Terms

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Enest Group Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Enest Group Bhd (XKLS:03025) » Definitions » ROC %

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Traded in Other Exchanges

N/A

Address

Jalan Semenyih, No. 2B - G, Bandar Kajang, Kajang, SGR, MYS, 43000

Website

https://bailengyen.com.my

Enest Group Bhd is principally involved in the processing of edible bird's nests. The nests are the processed nests of swiftlets, made from the strands of swiftlet saliva. The edible bird's nests are mainly sold to distributors, either under Bai Leng Yen brand name or unbranded depending on the request. The company supplies edible bird's nests to distributors in both local and foreign markets. It operating segments include: Bird's nest and Others.

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