NTPM Holdings Bhd (XKLS:5066) ROC % : 0.25% (As of Oct. 2024)

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What is NTPM Holdings 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 %. NTPM Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was 0.25%.

As of today (2025-03-24), NTPM Holdings Bhd's WACC % is 2.65%. NTPM Holdings Bhd's ROC % is -0.54% (calculated using TTM income statement data). NTPM Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NTPM Holdings Bhd ROC % Historical Data

The historical data trend for NTPM Holdings 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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NTPM Holdings Bhd ROC % Chart

NTPM Holdings Bhd Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

ROC %

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1.21

6.63

3.00

-43.36

-5.86

NTPM Holdings Bhd Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROC %	Get a 7-Day Free Trial															1.70	4.08	44.13	1.91	0.25

NTPM Holdings Bhd ROC % Calculation

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

	ROC % (A: Apr. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2023 )	+	Invested Capital (A: Apr. 2024 ))	/ count )
=	49.059 * ( 1 - 215.68% )	/	( (1008.982	+	928.676)	/ 2 )
=	-56.7514512	/	968.829
=	-5.86 %

where

	Invested Capital		(A: 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	))
=	1081.597	-	99.989	-	( 44.135	-	max(0, 509.93	-	482.556	+	44.135	))
=	1008.982

	Invested Capital		(A: Apr. 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	))
=	1019.964	-	101.051	-	( 55.626	-	max(0, 441.064	-	431.301	+	55.626	))
=	928.676

NTPM Holdings Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2024 is calculated as:

	ROC % (Q: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2024 )	+	Invested Capital (Q: Oct. 2024 ))	/ count )
=	24.272 * ( 1 - 90.55% )	/	( (908.341	+	911.829)	/ 2 )
=	2.293704	/	910.085
=	0.25 %

where

	Invested Capital		(Q: Jul. 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	))
=	1030.675	-	111.938	-	( 36.265	-	max(0, 445.749	-	456.145	+	36.265	))
=	908.341

	Invested Capital		(Q: Oct. 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	))
=	1021.335	-	89.142	-	( 33.672	-	max(0, 432.146	-	452.51	+	33.672	))
=	911.829

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

NTPM Holdings Bhd (XKLS:5066) 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, NTPM Holdings Bhd's WACC % is 2.65%. NTPM Holdings Bhd's ROC % is -0.54% (calculated using TTM income statement data). NTPM Holdings 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.

NTPM Holdings Bhd ROC % Related Terms

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NTPM Holdings Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » NTPM Holdings Bhd (XKLS:5066) » Definitions » ROC %

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Address

No. 886, Jalan Bandar Baru, Sungai Kecil, Seberang Perai Selatan, Nibong Tebal, PNG, MYS, 14300

Website

https://www.ntpm.com.my

NTPM Holdings Bhd is a consumer goods and paper company in Malaysia. Through its subsidiaries, it operates in two segments, Tissue Paper segment, and Personal Care segment. The tissue paper segment consists of facial tissue, toilet paper, kitchen towel rolls, and napkins. These products are sold under brands such as Premier, Royal Gold, Cutie, Soft Baby Wipes and Sanitizing Wipes. The personal care segment consists of feminine hygienic products, cotton products, baby diapers, and incontinent products. These products are sold under brands such as Intimate, Diapex, and Premier Cotton. The company generates most of its revenue from the Tissue Paper segment. Geographically the company has a presence in Malaysia, Singapore, Thailand, Vietnam, and Others, the majority is generated from Malaysia.

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