Maxland Bhd (XKLS:7123) ROC % : -3.81% (As of Sep. 2024)

View and export this data going back to 2001. Start your Free Trial

What is Maxland 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 %. Maxland Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.81%.

As of today (2024-12-15), Maxland Bhd's WACC % is 9.35%. Maxland Bhd's ROC % is -3.97% (calculated using TTM income statement data). Maxland Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Maxland Bhd ROC % Historical Data

The historical data trend for Maxland 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.

Maxland Bhd ROC % Chart

Maxland Bhd Annual Data

Trend

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

ROC %

Get a 7-Day Free Trial

1.65

5.10

3.40

-16.53

-8.42

Maxland Bhd Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-7.24	-7.17	-8.29	-12.08	-3.81

Maxland Bhd ROC % Calculation

Maxland Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

	ROC % (A: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2019 )	+	Invested Capital (A: Jun. 2020 ))	/ count )
=	-30.349 * ( 1 - 4.02% )	/	( (381.102	+	310.853)	/ 2 )
=	-29.1289702	/	345.9775
=	-8.42 %

where

	Invested Capital		(A: Jun. 2019 )
=	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	))
=	413.834	-	74.731	-	( 0.798	-	max(0, 98.685	-	56.686	+	0.798	))
=	381.102

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	307.742	-	65.702	-	( 4.072	-	max(0, 90.319	-	21.506	+	4.072	))
=	310.853

Maxland Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-11.572 * ( 1 - -1.87% )	/	( (317.413	+	300.902)	/ 2 )
=	-11.7883964	/	309.1575
=	-3.81 %

where

	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	))
=	378.094	-	89.992	-	( 6.692	-	max(0, 92.842	-	63.531	+	6.692	))
=	317.413

	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	))
=	339.404	-	106.005	-	( 2.648	-	max(0, 113.355	-	45.852	+	2.648	))
=	300.902

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

Maxland Bhd (XKLS:7123) 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, Maxland Bhd's WACC % is 9.35%. Maxland Bhd's ROC % is -3.97% (calculated using TTM income statement data). Maxland 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.

Maxland Bhd ROC % Related Terms

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

Maxland Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Maxland Bhd (XKLS:7123) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 5, Jalan Utara, 1st Floor, Block Number 4, P.O. Box 2848,, Bandar Indah, Mile 4, Sandakan, SBH, MYS, 90732

Website

https://www.maxlandbhd.com

Maxland Bhd formerly Priceworth International Bhd is Malaysian timber and wood-based products industry. The company's Segments are the logging segment involved in the extraction, the sale of logs, and tree planting, the manufacturing segment is in the business of manufacturing and sale of plywood, raw and laminated particleboard, veneer, sawn timber, bare core board, finger joints, molded timber, wooden doors and window frames, and fire doors, the engineering segment is involved in the provision of marine services, including repair and maintenance of tugboats and barges amongst others; and the other segment is involved in investment holding and the provision of hiring services. The majority of its revenue is derived from Japan from plywood export (manufacturing segment).

Maxland Bhd Headlines

No Headlines