Harn Len Bhd (XKLS:7501) ROC % : 7.44% (As of Nov. 2024)

View and export this data going back to 1996. Start your Free Trial

What is Harn Len 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 %. Harn Len Bhd's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was 7.44%.

As of today (2025-04-04), Harn Len Bhd's WACC % is 5.43%. Harn Len Bhd's ROC % is 2.36% (calculated using TTM income statement data). Harn Len Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Harn Len Bhd ROC % Historical Data

The historical data trend for Harn Len 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.

Harn Len Bhd ROC % Chart

Harn Len Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

May23

May24

ROC %

Get a 7-Day Free Trial

-3.55

-1.94

-4.44

3.64

Harn Len Bhd Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Mar23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial															0.52	-1.20	0.85	4.98	7.44

Harn Len Bhd ROC % Calculation

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

	ROC % (A: May. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2023 )	+	Invested Capital (A: May. 2024 ))	/ count )
=	2.267 * ( 1 - -603.72% )	/	( (414.291	+	461.965)	/ 2 )
=	15.9533324	/	438.128
=	3.64 %

where

	Invested Capital		(A: May. 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	))
=	445.057	-	21.739	-	( 9.027	-	max(0, 56.492	-	66.128	+	9.027	))
=	414.291

	Invested Capital		(A: May. 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	))
=	460.287	-	42.435	-	( 11.887	-	max(0, 74.538	-	30.425	+	11.887	))
=	461.965

Harn Len Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	44.584 * ( 1 - 29.94% )	/	( (419.306	+	420.751)	/ 2 )
=	31.2355504	/	420.0285
=	7.44 %

where

	Invested Capital		(Q: Aug. 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	))
=	459.118	-	47.852	-	( 13.177	-	max(0, 69.92	-	61.88	+	13.177	))
=	419.306

	Invested Capital		(Q: Nov. 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	))
=	479.883	-	37.045	-	( 29.235	-	max(0, 61.511	-	83.598	+	29.235	))
=	420.751

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

Harn Len Bhd (XKLS:7501) 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, Harn Len Bhd's WACC % is 5.43%. Harn Len Bhd's ROC % is 2.36% (calculated using TTM income statement data). Harn Len 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.

Harn Len Bhd ROC % Related Terms

Thank you for viewing the detailed overview of Harn Len Bhd's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Harn Len Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Harn Len Corp Bhd (XKLS:7501) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

15 Jalan Gereja, 6th Floor, Johor Tower, Johor Bahru, JHR, MYS, 80100

Website

https://www.harnlen.com.my

Harn Len Corp Bhd is involved in the operation of oil palm plantations and oil milling operations. The operating segments of the company are; Plantation, and Property and Others. A majority of its revenue is generated from the Plantation segment which is engaged in the operation of oil palm estates, oil palm mills, sales and purchases of Fresh Fruit Bunches (FFB), cultivation of pineapples, sales and trading of Crude Palm Oil (CPO) and Palm Kernels (PK), and the provision of plantation development contract services. The Property and Others segment is involved in property investment in land, commercial and industrial buildings. Other business includes the operation of a food and beverage outlet.

Harn Len Bhd Headlines

No Headlines