Pelikan International Bhd (XKLS:5231) ROC % : 332.93% (As of Mar. 2024)

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What is Pelikan International 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 %. Pelikan International Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 332.93%.

As of today (2024-06-13), Pelikan International Bhd's WACC % is 4.59%. Pelikan International Bhd's ROC % is 11401.87% (calculated using TTM income statement data). Pelikan International 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.

Pelikan International Bhd ROC % Historical Data

The historical data trend for Pelikan International 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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Pelikan International Bhd ROC % Chart

Pelikan International Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.55

2.17

10.25

-0.55

-3.68

Pelikan International Bhd Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															1.17	115.24	6.68	-7.49	332.93

Pelikan International Bhd ROC % Calculation

Pelikan International 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 )
=	-48.229 * ( 1 - 61.74% )	/	( (947.851	+	55.728)	/ 2 )
=	-18.4524154	/	501.7895
=	-3.68 %

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	))
=	1188.414	-	162.806	-	( 77.757	-	max(0, 421.228	-	641.382	+	77.757	))
=	947.851

	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	))
=	645.594	-	12.153	-	( 577.713	-	max(0, 24.957	-	641.306	+	577.713	))
=	55.728

Pelikan International 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 )
=	133.416 * ( 1 - -4.9% )	/	( (55.728	+	28.345)	/ 2 )
=	139.953384	/	42.0365
=	332.93 %

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	))
=	645.594	-	12.153	-	( 577.713	-	max(0, 24.957	-	641.306	+	577.713	))
=	55.728

	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	))
=	200.986	-	37.42	-	( 135.221	-	max(0, 42.521	-	196.738	+	135.221	))
=	28.345

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

Pelikan International Bhd (XKLS:5231) 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, Pelikan International Bhd's WACC % is 4.59%. Pelikan International Bhd's ROC % is 11401.87% (calculated using TTM income statement data). Pelikan International 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.

Pelikan International Bhd ROC % Related Terms

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Pelikan International Bhd (XKLS:5231) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Pelikan International Corp Bhd (XKLS:5231) » Definitions » ROC %

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Address

No. 9, Jalan Pemaju U1/15, Seksyen U1, Hicom Glenmarie Industrial Park, Shah Alam, SGR, MYS, 40150

Website

https://www.pelikan.com

Pelikan International Corp Bhd and its subsidiaries are engaged in the manufacturing and distribution of writing instruments, art, painting, and hobby products, school and office stationery, printer consumables, and papeterie products. Geographically it operates through the region of Germany, the Rest of Europe, the Americas, and the Rest of the World. The company distributes its products under the Pelikan, herlitz, Susy Card, and Geha brands through wholesalers, dealers, retailers, hypermarkets, schools, and specialized stores. It derives its revenue from the German region.

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