ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. MI Technovation Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 4.44%.
As of today (2025-03-26), MI Technovation Bhd's WACC % is 6.24%. MI Technovation Bhd's ROC % is 7.29% (calculated using TTM income statement data).
MI Technovation 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.
MI Technovation Bhd ROC % Historical Data
The historical data trend for MI Technovation 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.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2024) data.
* 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.
MI Technovation Bhd (XKLS:5286) 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, MI Technovation Bhd's WACC % is 6.24%. MI Technovation Bhd's ROC % is 7.29% (calculated using TTM income statement data).
MI Technovation 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.
MI Technovation Bhd ROC % Related Terms
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MI Technovation Bhd is an investment holding company. The group is involved in the design, development, manufacture, and sale of wafer-level chip-scale packaging sorting machines with inspection and testing capabilities for the semiconductor industry. Its reportable segments include Semiconductor Equipment Business Unit, Semiconductor Material Business Unit, Semiconductor Solutions Business Unit, and Others. Its majority of revenue comes from the Semiconductor Material Business Unit segment which is Involved in the manufacturing and sale of solder spheres (also known as solder balls), a key assembly and packaging material in the semiconductor industry.
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