Top Builders Capital Bhd (XKLS:5268) ROC % : -30.69% (As of Mar. 2023)

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What is Top Builders Capital 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 %. Top Builders Capital Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was -30.69%.

As of today (2024-06-11), Top Builders Capital Bhd's WACC % is 0.00%. Top Builders Capital Bhd's ROC % is 0.00% (calculated using TTM income statement data). Top Builders Capital Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Top Builders Capital Bhd ROC % Historical Data

The historical data trend for Top Builders Capital 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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Top Builders Capital Bhd ROC % Chart

Top Builders Capital Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Jun21

Jun22

ROC %

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1.85

-4.04

-35.80

132.07

Top Builders Capital Bhd Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
ROC %	Get a 7-Day Free Trial															-14.10	-50.06	-7.96	-15.79	-30.69

Top Builders Capital Bhd ROC % Calculation

Top Builders Capital Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	195.524 * ( 1 - 19.44% )	/	( (126.921	+	111.602)	/ 2 )
=	157.5141344	/	119.2615
=	132.07 %

where

	Invested Capital		(A: Jun. 2021 )
=	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	))
=	145.469	-	281.284	-	( 9.18	-	max(0, 356.687	-	93.951	+	9.18	))
=	126.921

	Invested Capital		(A: Jun. 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	))
=	116.961	-	114.984	-	( 5.419	-	max(0, 181.305	-	71.68	+	5.419	))
=	111.602

Top Builders Capital Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	-22.768 * ( 1 - 0% )	/	( (74.7	+	73.66)	/ 2 )
=	-22.768	/	74.18
=	-30.69 %

where

	Invested Capital		(Q: 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	))
=	117.479	-	158.572	-	( 9.644	-	max(0, 187.115	-	71.322	+	9.644	))
=	74.7

	Invested Capital		(Q: Mar. 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	))
=	115.116	-	160.829	-	( 6.748	-	max(0, 190.026	-	70.653	+	6.748	))
=	73.66

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) data.

Top Builders Capital Bhd (XKLS:5268) 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, Top Builders Capital Bhd's WACC % is 0.00%. Top Builders Capital Bhd's ROC % is 0.00% (calculated using TTM income statement data). Top Builders Capital 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.

Top Builders Capital Bhd ROC % Related Terms

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Top Builders Capital Bhd (XKLS:5268) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Top Builders Capital Bhd (XKLS:5268) » Definitions » ROC %

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Traded in Other Exchanges

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Address

No. 35, 37 and 39, Jalan PJU 1A/41B, Pusat Dagangan NZX Ara Jaya, PJU1A, Petaling Jaya, SGR, MYS, 47301

Website

http://www.ikhmasjaya.com

Top Builders Capital Bhd is a Malaysia-based company engaged in civil and building construction. The company is involved in the engineering and construction of piling and foundations, bridges, and buildings. It is also engaged in the installation of a prefabricated building system, general civil and building construction, and property management. Key revenue is generated from construction contracts.

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