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Lagenda Properties Bhd (XKLS:7179) ROC % : 11.06% (As of Mar. 2024)


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What is Lagenda Properties 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 %. Lagenda Properties Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 11.06%.

As of today (2024-06-04), Lagenda Properties Bhd's WACC % is 5.31%. Lagenda Properties Bhd's ROC % is 12.80% (calculated using TTM income statement data). Lagenda Properties 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.


Lagenda Properties Bhd ROC % Historical Data

The historical data trend for Lagenda Properties 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.

Lagenda Properties Bhd ROC % Chart

Lagenda Properties Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 41.66 27.06 23.91 16.16 11.11

Lagenda Properties Bhd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.11 12.71 14.13 14.20 11.06

Lagenda Properties Bhd ROC % Calculation

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

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=228.517 * ( 1 - 30.32% )/( (1314.429 + 1552.342)/ 2 )
=159.2306456/1433.3855
=11.11 %

where

Invested Capital(A: Dec. 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))
=1776.53 - 186.396 - ( 275.705 - max(0, 566.177 - 1505.681+275.705))
=1314.429

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))
=2243.468 - 564.321 - ( 126.805 - max(0, 1016.243 - 1556.269+126.805))
=1552.342

Lagenda Properties 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 )
=241.084 * ( 1 - 27.53% )/( (1552.342 + 1606.202)/ 2 )
=174.7135748/1579.272
=11.06 %

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))
=2243.468 - 564.321 - ( 126.805 - max(0, 1016.243 - 1556.269+126.805))
=1552.342

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))
=2338.559 - 436.287 - ( 296.07 - max(0, 733.163 - 1631.393+296.07))
=1606.202

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


Lagenda Properties Bhd  (XKLS:7179) 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, Lagenda Properties Bhd's WACC % is 5.31%. Lagenda Properties Bhd's ROC % is 12.80% (calculated using TTM income statement data). Lagenda Properties 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.


Lagenda Properties Bhd ROC % Related Terms

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Lagenda Properties Bhd (XKLS:7179) Business Description

Traded in Other Exchanges
N/A
Address
Pusat Bandar Seri Manjung Seksyen 2, Level 4, No. 131, Persiaran PM2/1, Seri Manjung, PRK, MYS, 32040
Lagenda Properties Bhd is engaged in the construction business. The company constructs residential properties with facilities like swimming pool, garden area, golf course, fitness area, and jogging tracks. The operating segments of the company include Property Development, Construction and Trading. The company derives key revenue from the Property development segment which involves property development activities and the sale of completed units. The group operates in Malaysia.

Lagenda Properties Bhd (XKLS:7179) Headlines

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