Al-Salam Real Estate Investment Trust (XKLS:5269) ROC % : 5.68% (As of Dec. 2024)

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What is Al-Salam Real Estate Investment Trust 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 %. Al-Salam Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 5.68%.

As of today (2025-03-25), Al-Salam Real Estate Investment Trust's WACC % is 5.61%. Al-Salam Real Estate Investment Trust's ROC % is 3.48% (calculated using TTM income statement data). Al-Salam Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Al-Salam Real Estate Investment Trust ROC % Historical Data

The historical data trend for Al-Salam Real Estate Investment Trust'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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Al-Salam Real Estate Investment Trust ROC % Chart

Al-Salam Real Estate Investment Trust Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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3.65

3.49

3.33

2.92

3.42

Al-Salam Real Estate Investment Trust 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															2.36	3.84	3.66	3.51	5.68

Al-Salam Real Estate Investment Trust ROC % Calculation

Al-Salam Real Estate Investment Trust's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	47.077 * ( 1 - 4.48% )	/	( (1367.38	+	1260.362)	/ 2 )
=	44.9679504	/	1313.871
=	3.42 %

where

	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	))
=	1316.061	-	13.805	-	( 5.772	-	max(0, 140.374	-	75.25	+	5.772	))
=	1367.38

	Invested Capital		(A: 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	))
=	1317.195	-	21.089	-	( 35.744	-	max(0, 66.589	-	113.805	+	35.744	))
=	1260.362

Al-Salam Real Estate Investment Trust'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 )
=	45.872 * ( 1 - -57.67% )	/	( (1286.662	+	1260.362)	/ 2 )
=	72.3263824	/	1273.512
=	5.68 %

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	))
=	1316.558	-	11.961	-	( 37.291	-	max(0, 57.47	-	75.405	+	37.291	))
=	1286.662

	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	))
=	1317.195	-	21.089	-	( 35.744	-	max(0, 66.589	-	113.805	+	35.744	))
=	1260.362

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

Al-Salam Real Estate Investment Trust (XKLS:5269) 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, Al-Salam Real Estate Investment Trust's WACC % is 5.61%. Al-Salam Real Estate Investment Trust's ROC % is 3.48% (calculated using TTM income statement data). Al-Salam Real Estate Investment Trust 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.

Al-Salam Real Estate Investment Trust ROC % Related Terms

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Al-Salam Real Estate Investment Trust Business Description

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GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Al-Salam Real Estate Investment Trust (XKLS:5269) » Definitions » ROC %

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Address

V SQUARE, Jalan Utara, Unit 1-19-02, Level 19, Block 1, Bandar Petaling Jaya, Petaling Jaya, SGR, MYS, 46200

Website

https://www.alsalamreit.com.my

Al-Salam Real Estate Investment Trust is an Islamic REIT (Real Estate Investment Trust) based in Malaysia. The principal activity of the trust is to invest in Shariah-compliant properties. Its segments includes Food and Beverage (F&B), which is divided into a restaurant and non-restaurant outlets; Retail outlets; Office buildings; Industrial and others, and Other comprising fund level operations. The Fund's key objective is to provide unitholders with regular and stable income distributions, sustainable long-term unit prices, and distributable income and capital growth while maintaining an appropriate capital structure. The Fund operates solely in Malaysia.

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