Karex Bhd (XKLS:5247) ROC % : 3.95% (As of Dec. 2024)

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What is Karex 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 %. Karex Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 3.95%.

As of today (2025-03-31), Karex Bhd's WACC % is 8.60%. Karex Bhd's ROC % is 3.56% (calculated using TTM income statement data). Karex Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Karex Bhd ROC % Historical Data

The historical data trend for Karex 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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Karex Bhd ROC % Chart

Karex Bhd Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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0.98

-0.10

-0.49

2.61

4.87

Karex Bhd Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															5.97	5.18	4.33	1.29	3.95

Karex Bhd ROC % Calculation

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

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	39.488 * ( 1 - 24.37% )	/	( (616.82	+	608.556)	/ 2 )
=	29.8647744	/	612.688
=	4.87 %

where

	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	))
=	721.725	-	73.185	-	( 31.72	-	max(0, 171.81	-	320.327	+	31.72	))
=	616.82

	Invested Capital		(A: 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	))
=	708.84	-	61.298	-	( 38.986	-	max(0, 161.524	-	320.823	+	38.986	))
=	608.556

Karex 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: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	15.912 * ( 1 - -46.89% )	/	( (584.801	+	598.001)	/ 2 )
=	23.3731368	/	591.401
=	3.95 %

where

	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	))
=	697.095	-	67.219	-	( 45.075	-	max(0, 167.568	-	314.03	+	45.075	))
=	584.801

	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	))
=	710.763	-	66.88	-	( 45.882	-	max(0, 173.837	-	320.285	+	45.882	))
=	598.001

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

Karex Bhd (XKLS:5247) 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, Karex Bhd's WACC % is 8.60%. Karex Bhd's ROC % is 3.56% (calculated using TTM income statement data). Karex 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.

Karex Bhd ROC % Related Terms

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Karex Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Karex Bhd (XKLS:5247) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Lot 594, Persiaran Raja Lumu, Pandamaran Industrial Estate, Port Klang, SGR, MYS, 42000

Website

https://www.karex.com.my

Karex Bhd is a Malaysian investment holding company. Along with its subsidiaries, its main business activities comprise investment holding, manufacture, and sale of sexual wellness, medical, and other health-related products. These activities are located in Malaysia, Thailand, the United States of America, and the United Kingdom. It is principally engaged in manufacturing and selling condoms, personal lubricants, latex probe covers, oral dams, and others. The operating segments of the company are Sexual wellness, which generates maximum profits, Medical, and Others. Geographically, it derives key revenue from the Americas and the rest from Asia, Europe, and Africa.

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