Borneo Oil Bhd (XKLS:7036) ROC % : 8.67% (As of Dec. 2024)

View and export this data going back to 1997. Start your Free Trial

What is Borneo Oil 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 %. Borneo Oil Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 8.67%.

As of today (2025-03-28), Borneo Oil Bhd's WACC % is 4.47%. Borneo Oil Bhd's ROC % is 0.08% (calculated using TTM income statement data). Borneo Oil Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Borneo Oil Bhd ROC % Historical Data

The historical data trend for Borneo Oil 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.

* Premium members only.

Borneo Oil Bhd ROC % Chart

Borneo Oil Bhd Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

Get a 7-Day Free Trial

0.29

3.96

6.57

3.84

8.32

Borneo Oil 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															-32.91	-11.09	70.22	-68.60	8.67

Borneo Oil Bhd ROC % Calculation

Borneo Oil 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 )
=	81.273 * ( 1 - 1.77% )	/	( (929.13	+	989.392)	/ 2 )
=	79.8344679	/	959.261
=	8.32 %

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	))
=	961.848	-	21.136	-	( 11.582	-	max(0, 29.685	-	123.936	+	11.582	))
=	929.13

	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	))
=	1030.451	-	31.432	-	( 9.627	-	max(0, 40.648	-	51.049	+	9.627	))
=	989.392

Borneo Oil 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 )
=	74.48 * ( 1 - 1.44% )	/	( (835.549	+	857.075)	/ 2 )
=	73.407488	/	846.312
=	8.67 %

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	))
=	872.476	-	35.035	-	( 9.513	-	max(0, 43.152	-	45.044	+	9.513	))
=	835.549

	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	))
=	915.065	-	37.341	-	( 29.513	-	max(0, 45.53	-	66.179	+	29.513	))
=	857.075

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

Borneo Oil Bhd (XKLS:7036) 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, Borneo Oil Bhd's WACC % is 4.47%. Borneo Oil Bhd's ROC % is 0.08% (calculated using TTM income statement data). Borneo Oil 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.

Borneo Oil Bhd ROC % Related Terms

Thank you for viewing the detailed overview of Borneo Oil Bhd's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Borneo Oil Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Borneo Oil Bhd (XKLS:7036) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Satok, Lot 180, Section 19, KTLD, Kuching, SWK, MYS, 93400

Website

http://www.borneo-oil.com.my

Borneo Oil Bhd is a Malaysia-based investment holding company. The company's operating segment includes Head office and others; Food and franchise operations includes ownership of restaurant chains, food manufacturing, and franchise operations; Property investment: Activities involve property maintenance and optimising property portfolios to enhance investment return. Management and Resources and sustainable energy: This includes activities such as mining and the supply of mineral resources. It generates maximum revenue from the Food and franchise operations segment. Geographically, it derives a majority of revenue from Malaysia.

Borneo Oil Bhd Headlines

No Headlines