Evergreen Fibreboard Bhd (XKLS:5101) ROC % : -2.98% (As of Sep. 2024)

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What is Evergreen Fibreboard 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 %. Evergreen Fibreboard Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -2.98%.

As of today (2024-12-12), Evergreen Fibreboard Bhd's WACC % is 9.08%. Evergreen Fibreboard Bhd's ROC % is -0.83% (calculated using TTM income statement data). Evergreen Fibreboard Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Evergreen Fibreboard Bhd ROC % Historical Data

The historical data trend for Evergreen Fibreboard 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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Evergreen Fibreboard Bhd ROC % Chart

Evergreen Fibreboard Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-2.75

-0.77

2.47

3.44

-3.06

Evergreen Fibreboard Bhd Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															2.29	-11.42	2.58	2.53	-2.98

Evergreen Fibreboard Bhd ROC % Calculation

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

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-20.74 * ( 1 - -70.44% )	/	( (1128.258	+	1182.993)	/ 2 )
=	-35.349256	/	1155.6255
=	-3.06 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	1313.665	-	68.766	-	( 116.641	-	max(0, 231.678	-	426.421	+	116.641	))
=	1128.258

	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	))
=	1456.321	-	80.723	-	( 199.569	-	max(0, 330.241	-	522.846	+	199.569	))
=	1182.993

Evergreen Fibreboard Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-24.436 * ( 1 - -36.33% )	/	( (1123.709	+	1112.68)	/ 2 )
=	-33.3135988	/	1118.1945
=	-2.98 %

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	))
=	1407.851	-	129.571	-	( 154.571	-	max(0, 277.611	-	471.378	+	154.571	))
=	1123.709

	Invested Capital		(Q: Sep. 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	))
=	1414.487	-	150.981	-	( 150.826	-	max(0, 314.226	-	506.007	+	150.826	))
=	1112.68

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

Evergreen Fibreboard Bhd (XKLS:5101) 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, Evergreen Fibreboard Bhd's WACC % is 9.08%. Evergreen Fibreboard Bhd's ROC % is -0.83% (calculated using TTM income statement data). Evergreen Fibreboard 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.

Evergreen Fibreboard Bhd ROC % Related Terms

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Evergreen Fibreboard Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Evergreen Fibreboard Bhd (XKLS:5101) » Definitions » ROC %

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Traded in Other Exchanges

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Address

PLO 22, Parit Raja Industrial Estate, Batu Pahat, Parit Raja, JHR, MYS, 86400

Website

https://www.evergreengroup.com.my

Evergreen Fibreboard Bhd is a Malaysia-based company engaged in the manufacture of medium-density fibreboard and wooden furniture. The group is organised into three geographical segments; Malaysia which involves the manufacture of medium-density fibreboard, wooden furniture parts, and furniture, particleboard, glue, and resin, as well as trading and managing of plantation; Thailand which involves the production and distribution of medium density fibreboard and wood products; and Indonesia which comprises manufacture of medium density fibreboard, glue, and resin; and Others which consists distribution of household products made of rubberwood. It derives prime revenue from Thailand.

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