Kheen Bhd (XKLS:6203) ROC % : 0.31% (As of Mar. 2024)

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What is Kheen 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 %. Kheen Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.31%.

As of today (2024-06-09), Kheen Bhd's WACC % is 3.65%. Kheen Bhd's ROC % is 0.54% (calculated using TTM income statement data). Kheen Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kheen Bhd ROC % Historical Data

The historical data trend for Kheen 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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Kheen Bhd ROC % Chart

Kheen Bhd Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun21

Jun22

Jun23

ROC %

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-0.06

3.43

-7.43

-5.56

3.33

Kheen Bhd Quarterly Data
	Sep18	Mar19	Jun19	Sep19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															0.34	-2.66	0.26	0.70	0.31

Kheen Bhd ROC % Calculation

Kheen Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	2.341 * ( 1 - -97.26% )	/	( (140.778	+	136.459)	/ 2 )
=	4.6178566	/	138.6185
=	3.33 %

where

	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	))
=	70.814	-	61.751	-	( 2.098	-	max(0, 144.9	-	13.185	+	2.098	))
=	140.778

	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	))
=	70.632	-	62.663	-	( 2.337	-	max(0, 144.136	-	15.646	+	2.337	))
=	136.459

Kheen 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 )
=	0.4 * ( 1 - 0% )	/	( (130.178	+	129.461)	/ 2 )
=	0.4	/	129.8195
=	0.31 %

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	))
=	71.952	-	68.274	-	( 3.472	-	max(0, 144.936	-	18.436	+	3.472	))
=	130.178

	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	))
=	71.676	-	67.939	-	( 3.947	-	max(0, 144.598	-	18.874	+	3.947	))
=	129.461

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

Kheen Bhd (XKLS:6203) 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, Kheen Bhd's WACC % is 3.65%. Kheen Bhd's ROC % is 0.54% (calculated using TTM income statement data). Kheen 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.

Kheen Bhd ROC % Related Terms

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Kheen Bhd (XKLS:6203) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Khee San Bhd (XKLS:6203) » Definitions » ROC %

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N/A

Address

Jalan Kolej, Lot 1819, 1820, 1821, 1822, 1823, 1824 and 1832, Seri Kembangan, SGR, MYS, 43300

Website

http://www.kheesanbhd.com

Khee San Bhd is a Malaysia-based company. Its principal business is the manufacturing of candies and wafer confectionery. The company operates in two segments Investment and Manufacturing and trading. The prime revenue is generated from the Manufacturing and trading segment which includes manufacturing and trading of food and all related products. Its products include candies, chewy, tablet, hard, bubble gum, chewing gum, deposited, and wafers. Some of the products offered by the company are marketed under brands of Fruitplus, Torrone, Victory, S'creams, Bento, and others. The group operates in Malaysia and also exports its products to other geographical regions, such as Africa, Europe and Rest of Asia.

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