Superlon Holdings Bhd (XKLS:7235) ROC % : 9.07% (As of Oct. 2024)

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What is Superlon 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 %. Superlon Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was 9.07%.

As of today (2024-12-14), Superlon Holdings Bhd's WACC % is 2.64%. Superlon Holdings Bhd's ROC % is 9.84% (calculated using TTM income statement data). Superlon Holdings 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.

Superlon Holdings Bhd ROC % Historical Data

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

Superlon Holdings Bhd Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

ROC %

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7.04

10.39

4.08

1.93

9.15

Superlon Holdings Bhd Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROC %	Get a 7-Day Free Trial															9.49	10.07	12.15	9.01	9.07

Superlon Holdings Bhd ROC % Calculation

Superlon Holdings Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2024 is calculated as:

	ROC % (A: Apr. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2023 )	+	Invested Capital (A: Apr. 2024 ))	/ count )
=	14.422 * ( 1 - 13.62% )	/	( (133.073	+	139.353)	/ 2 )
=	12.4577236	/	136.213
=	9.15 %

where

	Invested Capital		(A: Apr. 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	))
=	191.521	-	5.19	-	( 53.258	-	max(0, 13.061	-	94.404	+	53.258	))
=	133.073

	Invested Capital		(A: Apr. 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	))
=	202.767	-	6.441	-	( 56.973	-	max(0, 18.637	-	102.034	+	56.973	))
=	139.353

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

	ROC % (Q: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2024 )	+	Invested Capital (Q: Oct. 2024 ))	/ count )
=	14.948 * ( 1 - 17.82% )	/	( (134.553	+	136.447)	/ 2 )
=	12.2842664	/	135.5
=	9.07 %

where

	Invested Capital		(Q: Jul. 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	))
=	205.81	-	11.912	-	( 59.345	-	max(0, 21.037	-	107.304	+	59.345	))
=	134.553

	Invested Capital		(Q: Oct. 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	))
=	204.544	-	11.826	-	( 56.271	-	max(0, 18.249	-	107.218	+	56.271	))
=	136.447

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

Superlon Holdings Bhd (XKLS:7235) 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, Superlon Holdings Bhd's WACC % is 2.64%. Superlon Holdings Bhd's ROC % is 9.84% (calculated using TTM income statement data). Superlon Holdings 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.

Superlon Holdings Bhd ROC % Related Terms

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Superlon Holdings Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Superlon Holdings Bhd (XKLS:7235) » Definitions » ROC %

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Address

Lot 2567, Jalan Sungai Jati, Klang, SGR, MYS, 41200

Website

https://www.superlon.com.my

Superlon Holdings Bhd is principally engaged in the business of investment holding and provision of management services. The group comprises the following business segments: Insulation Materials segment, which manufactures thermal insulation materials mainly for the heating, ventilation, air-conditioning, and refrigeration (HVAC&R) industry; HVAC&R Parts and Equipment engaged in trading of HVAC&R parts and equipment and Investment holdings. Geographically, it derives a majority of its revenue from Asia (excluding Malaysia) and Oceania and also has a presence in Africa, America, and Europe.

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