YB Ventures Bhd (XKLS:5048) ROC % : -10.55% (As of Mar. 2024)

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What is YB Ventures 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 %. YB Ventures Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -10.55%.

As of today (2024-06-25), YB Ventures Bhd's WACC % is 6.74%. YB Ventures Bhd's ROC % is -5.10% (calculated using TTM income statement data). YB Ventures Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

YB Ventures Bhd ROC % Historical Data

The historical data trend for YB Ventures 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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YB Ventures Bhd ROC % Chart

YB Ventures Bhd Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Jun23

ROC %

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-2.97

-3.18

-5.75

5.40

-6.67

YB Ventures Bhd Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-18.61	-2.53	-16.69	-9.30	-10.55

YB Ventures Bhd ROC % Calculation

YB Ventures Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-24.126 * ( 1 - 24.11% )	/	( (239.617	+	309.081)	/ 2 )
=	-18.3092214	/	274.349
=	-6.67 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	322.846	-	14.357	-	( 68.872	-	max(0, 21.517	-	166.544	+	68.872	))
=	239.617

	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	))
=	372.794	-	6.003	-	( 57.71	-	max(0, 30.868	-	136.848	+	57.71	))
=	309.081

YB Ventures Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-31 * ( 1 - -0.01% )	/	( (295.917	+	291.813)	/ 2 )
=	-31.0031	/	293.865
=	-10.55 %

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	))
=	349.872	-	7.187	-	( 46.768	-	max(0, 31.888	-	115.394	+	46.768	))
=	295.917

	Invested Capital		(Q: Mar. 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	))
=	333.093	-	8.231	-	( 33.049	-	max(0, 30.954	-	99.283	+	33.049	))
=	291.813

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

YB Ventures Bhd (XKLS:5048) 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, YB Ventures Bhd's WACC % is 6.74%. YB Ventures Bhd's ROC % is -5.10% (calculated using TTM income statement data). YB Ventures 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.

YB Ventures Bhd ROC % Related Terms

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YB Ventures Bhd (XKLS:5048) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » YB Ventures Bhd (XKLS:5048) » Definitions » ROC %

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Address

Lot 7020, Batu 23, Jalan Air Hitam, Johor Darul Takzim, Kulai, SGR, MYS, 81000

Website

https://www.ybventures.com

YB Ventures Bhd is an investment holding company engaged in the tile manufacturing and internet technology. The company operates in two segments namely, Manufacturing and trading segment and Investment holding and dormant segment, out of which the majority of revenue is derived from the Manufacturing and Trading segment. The Group mainly produces tiles under their proprietary brand Alpha Tile a household name in construction, renovation and interior fit-out industries. Geographically it operates in Malaysia, Singapore and Others, out of which the majority of revenue is derived from Malaysia.

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