IDB Technologies Bhd (XKLS:03030) ROC % : 154.64% (As of Dec. 2024)

View and export this data going back to 2019. Start your Free Trial

What is IDB Technologies 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 %. IDB Technologies Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 154.64%.

As of today (2025-03-28), IDB Technologies Bhd's WACC % is 0.43%. IDB Technologies Bhd's ROC % is 165.44% (calculated using TTM income statement data). IDB Technologies 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.

IDB Technologies Bhd ROC % Historical Data

The historical data trend for IDB Technologies 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.

IDB Technologies Bhd ROC % Chart

IDB Technologies Bhd Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

Get a 7-Day Free Trial

17.93

16.72

30.03

69.02

104.95

IDB Technologies Bhd Semi-Annual Data
	Jun17	Jun18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial									90.88	108.08	122.32	159.24	154.64

IDB Technologies Bhd ROC % Calculation

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

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	2.384 * ( 1 - 26.02% )	/	( (1.692	+	1.669)	/ 2 )
=	1.7636832	/	1.6805
=	104.95 %

where

	Invested Capital		(A: Jun. 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	))
=	6.79	-	0.525	-	( 4.573	-	max(0, 1.522	-	6.128	+	4.573	))
=	1.692

	Invested Capital		(A: 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	))
=	7.449	-	0.539	-	( 5.241	-	max(0, 1.511	-	6.944	+	5.241	))
=	1.669

IDB Technologies 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 )
=	3.658 * ( 1 - 30.88% )	/	( (1.669	+	1.601)	/ 2 )
=	2.5284096	/	1.635
=	154.64 %

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	))
=	7.449	-	0.539	-	( 5.241	-	max(0, 1.511	-	6.944	+	5.241	))
=	1.669

	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	))
=	9.337	-	2.064	-	( 6.029	-	max(0, 2.147	-	7.819	+	6.029	))
=	1.601

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

IDB Technologies Bhd (XKLS:03030) 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, IDB Technologies Bhd's WACC % is 0.43%. IDB Technologies Bhd's ROC % is 165.44% (calculated using TTM income statement data). IDB Technologies 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.

IDB Technologies Bhd ROC % Related Terms

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

IDB Technologies Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » IDB Technologies Bhd (XKLS:03030) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Teknokrat 2/1, Cyber 4, C5-3, Radius Business Park, Cyberjaya, Kuala Lumpur, SGR, MYS, 63000

Website

https://www.idb.com.my

IDB Technologies Bhd is a PMS solution provider. Its PMS solutions comprise of proprietary software, hardware as well as other services and solutions. The PMS solutions facilitate the management of hotel and accommodation operations and functions and, its customers are hotels and accommodations. It operates in one business segment being development and trading of software in Malaysia. Geographically, the company derives a majority of its revenue from Malaysia followed by Cambodia, Singapore, Indonesia, and Vietnam.

IDB Technologies Bhd Headlines

No Headlines