Solar District Cooling Group Bhd (XKLS:0321) ROC % : 25.91% (As of Dec. 2024)

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What is Solar District Cooling 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 %. Solar District Cooling Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 25.91%.

As of today (2025-03-25), Solar District Cooling Group Bhd's WACC % is 10.31%. Solar District Cooling Group Bhd's ROC % is 25.91% (calculated using TTM income statement data). Solar District Cooling 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.

Solar District Cooling Group Bhd ROC % Historical Data

The historical data trend for Solar District Cooling 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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Solar District Cooling Group Bhd ROC % Chart

Solar District Cooling Group Bhd Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

13.34

26.99

34.10

43.09

25.91

Solar District Cooling Group Bhd Semi-Annual Data
	Dec20	Dec21	Dec22	Dec23	Dec24
ROC %	13.34	26.99	34.10	43.09	25.91

Solar District Cooling Group Bhd ROC % Calculation

Solar District Cooling 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 )
=	5.434 * ( 1 - 27.64% )	/	( (15.305	+	15.045)	/ 2 )
=	3.9320424	/	15.175
=	25.91 %

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	))
=	24.217	-	2.769	-	( 6.143	-	max(0, 4.062	-	19.245	+	6.143	))
=	15.305

	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	))
=	65.905	-	3.004	-	( 47.856	-	max(0, 3.072	-	61.047	+	47.856	))
=	15.045

Solar District Cooling 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: Dec. 2023 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	5.434 * ( 1 - 27.64% )	/	( (15.305	+	15.045)	/ 2 )
=	3.9320424	/	15.175
=	25.91 %

where

	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	))
=	24.217	-	2.769	-	( 6.143	-	max(0, 4.062	-	19.245	+	6.143	))
=	15.305

	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	))
=	65.905	-	3.004	-	( 47.856	-	max(0, 3.072	-	61.047	+	47.856	))
=	15.045

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

Solar District Cooling Group Bhd (XKLS:0321) 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, Solar District Cooling Group Bhd's WACC % is 10.31%. Solar District Cooling Group Bhd's ROC % is 25.91% (calculated using TTM income statement data). Solar District Cooling 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.

Solar District Cooling Group Bhd ROC % Related Terms

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Solar District Cooling Group Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Solar District Cooling Group Bhd (XKLS:0321) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Jalan Kajang Perdana 3/2, Wisma SDC No. 25, Taman Kajang Perdana, Kajang, SGR, MYS, 43000

Website

https://www.sdc.my

Solar District Cooling Group Bhd is principally involved in the provision and maintenance of BMS, solar thermal systems, other systems and equipment and other energy services. Its wholly-owned subsidiary is principally involved in mechanical and electrical works, and project management services.

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