Skygate Solutions Bhd (XKLS:7249) ROC % : 1.36% (As of Sep. 2024)

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What is Skygate Solutions 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 %. Skygate Solutions Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.36%.

As of today (2024-12-12), Skygate Solutions Bhd's WACC % is 3.75%. Skygate Solutions Bhd's ROC % is 0.43% (calculated using TTM income statement data). Skygate Solutions Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Skygate Solutions Bhd ROC % Historical Data

The historical data trend for Skygate Solutions 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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Skygate Solutions Bhd ROC % Chart

Skygate Solutions Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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13.27

4.59

3.43

-0.22

0.29

Skygate Solutions Bhd Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															2.61	-10.68	2.77	0.61	1.36

Skygate Solutions Bhd ROC % Calculation

Skygate Solutions 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 )
=	1.508 * ( 1 - 54.84% )	/	( (227.521	+	250.162)	/ 2 )
=	0.6810128	/	238.8415
=	0.29 %

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	))
=	284.337	-	8.404	-	( 48.412	-	max(0, 18.301	-	183.313	+	48.412	))
=	227.521

	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	))
=	323.326	-	7.871	-	( 65.293	-	max(0, 25.769	-	178.932	+	65.293	))
=	250.162

Skygate Solutions 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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	16.28 * ( 1 - 76.98% )	/	( (238.664	+	314.189)	/ 2 )
=	3.747656	/	276.4265
=	1.36 %

where

	Invested Capital		(Q: 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	))
=	343.975	-	46.175	-	( 59.136	-	max(0, 50.016	-	168.473	+	59.136	))
=	238.664

	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	))
=	386.285	-	21.671	-	( 50.425	-	max(0, 25.545	-	149.822	+	50.425	))
=	314.189

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

Skygate Solutions Bhd (XKLS:7249) 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, Skygate Solutions Bhd's WACC % is 3.75%. Skygate Solutions Bhd's ROC % is 0.43% (calculated using TTM income statement data). Skygate Solutions 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.

Skygate Solutions Bhd ROC % Related Terms

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Skygate Solutions Bhd Business Description

Industry

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Traded in Other Exchanges

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Address

No. 1, Lebuh Tunku Kudin 3, Suite 1-01-02 Menara IJM Land, Gelugor, PNG, MYS, 11700

Website

https://www.eweinberhad.com

Skygate Solutions Bhd formerly Ewein Bhd is a Malaysia-based metal fabrication company. It operates through four business segments. The manufacturing segment involves the manufacturing of precision sheet metal fabricated parts and the design and fabrication of moulds, tools, and dies. The property development and construction segment comprises the development of residential properties and trading in construction materials. Property Management offers to let and manage an office building, factory building, heritage, and cultural property. The investment holding segment manages investment holding activities. Geographically, it has operations in Malaysia, China, Indonesia, USA, Japan, Europe, and other countries. Maximum revenue is generated from the Property management segment in Malaysia.

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