Teck Guan Perdana Bhd (XKLS:7439) ROC % : 13.72% (As of Oct. 2023)

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What is Teck Guan Perdana 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 %. Teck Guan Perdana Bhd's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was 13.72%.

As of today (2024-05-17), Teck Guan Perdana Bhd's WACC % is 9.86%. Teck Guan Perdana Bhd's ROC % is 3.33% (calculated using TTM income statement data). Teck Guan Perdana Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Teck Guan Perdana Bhd ROC % Historical Data

The historical data trend for Teck Guan Perdana 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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Teck Guan Perdana Bhd ROC % Chart

Teck Guan Perdana Bhd Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

ROC %

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2.53

4.35

9.66

20.21

28.84

Teck Guan Perdana Bhd Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
ROC %	Get a 7-Day Free Trial															72.48	-20.86	8.55	10.01	13.72

Teck Guan Perdana Bhd ROC % Calculation

Teck Guan Perdana Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2023 is calculated as:

	ROC % (A: Jan. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2022 )	+	Invested Capital (A: Jan. 2023 ))	/ count )
=	42.163 * ( 1 - 27.21% )	/	( (128.834	+	83.986)	/ 2 )
=	30.6904477	/	106.41
=	28.84 %

where

	Invested Capital		(A: Jan. 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	))
=	219.014	-	50.016	-	( 40.164	-	max(0, 115.938	-	168.224	+	40.164	))
=	128.834

	Invested Capital		(A: Jan. 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	))
=	173.581	-	34.528	-	( 55.067	-	max(0, 45.97	-	101.441	+	55.067	))
=	83.986

Teck Guan Perdana Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	18.076 * ( 1 - 15.66% )	/	( (94.391	+	127.884)	/ 2 )
=	15.2452984	/	111.1375
=	13.72 %

where

	Invested Capital		(Q: Jul. 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	))
=	163.112	-	25.395	-	( 43.326	-	max(0, 32.627	-	91.863	+	43.326	))
=	94.391

	Invested Capital		(Q: Oct. 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	))
=	169.29	-	27.379	-	( 14.027	-	max(0, 38.055	-	98.143	+	14.027	))
=	127.884

Note: The Operating Income data used here is four times the quarterly (Oct. 2023) data.

Teck Guan Perdana Bhd (XKLS:7439) 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, Teck Guan Perdana Bhd's WACC % is 9.86%. Teck Guan Perdana Bhd's ROC % is 3.33% (calculated using TTM income statement data). Teck Guan Perdana 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.

Teck Guan Perdana Bhd ROC % Related Terms

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Teck Guan Perdana Bhd (XKLS:7439) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Teck Guan Perdana Bhd (XKLS:7439) » Definitions » ROC %

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Traded in Other Exchanges

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Address

318, Teck Guan Regency, Jalan St. Patrick, Off Jalan Belunu, Tawau, SBH, MYS, 91000

Website

http://www.teckguan.com/tgp

Teck Guan Perdana Bhd is engaged in the production of palm oil and cocoa. The company's business activities include the sale of plantation produce, crude palm kernel oil, palm kernel expeller, trading of palm oil-related products, the sale of cocoa products, and dried cocoa beans. It sells its products to international buyers which include Nestle, Cadbury, M&M Mars, Gerkens, and EDF & Man. Its segments include Cocoa products which processes, and sells cocoa butter, cocoa powder and other cocoa products, and the export of trading produce; Oil palm products which derive the majority revenue operate oil palm plantations, the operation of kernel crushing plant; and the Corporate segment that includes group-level corporate service and treasury functions.

Teck Guan Perdana Bhd (XKLS:7439) Headlines

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