GIIB Holdings Bhd (XKLS:7192) ROC % : 1.73% (As of Mar. 2024)

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What is GIIB Holdings 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 %. GIIB Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.73%.

As of today (2024-06-21), GIIB Holdings Bhd's WACC % is 8.40%. GIIB Holdings Bhd's ROC % is -7.53% (calculated using TTM income statement data). GIIB Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GIIB Holdings Bhd ROC % Historical Data

The historical data trend for GIIB Holdings 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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GIIB Holdings Bhd ROC % Chart

GIIB Holdings Bhd Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Jun19

Jun23

ROC %

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-5.49

-6.69

-19.59

-15.64

-19.84

GIIB Holdings Bhd Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															1.21	-37.35	-2.01	8.94	1.73

GIIB Holdings Bhd ROC % Calculation

GIIB Holdings 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. 2019 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-22.707 * ( 1 - 0% )	/	( (129.496	+	99.402)	/ 2 )
=	-22.707	/	114.449
=	-19.84 %

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	))
=	131.499	-	27.496	-	( 8.46	-	max(0, 77.285	-	51.792	+	8.46	))
=	129.496

	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	))
=	104.388	-	23.254	-	( 2.398	-	max(0, 51.481	-	33.213	+	2.398	))
=	99.402

GIIB Holdings 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 )
=	1.576 * ( 1 - 0% )	/	( (91.251	+	91.291)	/ 2 )
=	1.576	/	91.271
=	1.73 %

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	))
=	107.971	-	34.682	-	( 4.485	-	max(0, 56.638	-	38.676	+	4.485	))
=	91.251

	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	))
=	110.847	-	36.868	-	( 2.351	-	max(0, 59.4	-	42.088	+	2.351	))
=	91.291

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

GIIB Holdings Bhd (XKLS:7192) 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, GIIB Holdings Bhd's WACC % is 8.40%. GIIB Holdings Bhd's ROC % is -7.53% (calculated using TTM income statement data). GIIB Holdings 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.

GIIB Holdings Bhd ROC % Related Terms

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GIIB Holdings Bhd (XKLS:7192) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » GIIB Holdings Bhd (XKLS:7192) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot PT 1654 and PT 1657, Nilai Industrial Estate, Darul Khusus, Nilai, NSN, MYS, 71800

Website

https://www.giibworld.com

GIIB Holdings Bhd develops, manufactures, and markets rubber compounds and rubber related products in Malaysia. The company's operating segment includes Rubber compounds; Property development; Re-treading services; Trading and Others. It generates maximum revenue from the Rubber compounds segment. Geographically, it derives a majority of revenue from Malaysia and also has a presence in Europe; the Rest of Asia; Oceanic; Africa, and North America. The firm offers its products under the Supercool, Tough Tread and Rubtek brands.

GIIB Holdings Bhd (XKLS:7192) Headlines

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