Computer Forms (Malaysia) Bhd (XKLS:8044) ROC % : -34.95% (As of Sep. 2024)

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What is Computer Forms (Malaysia) 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 %. Computer Forms (Malaysia) Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -34.95%.

As of today (2024-12-15), Computer Forms (Malaysia) Bhd's WACC % is -3.65%. Computer Forms (Malaysia) Bhd's ROC % is -13.51% (calculated using TTM income statement data). Computer Forms (Malaysia) Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Computer Forms (Malaysia) Bhd ROC % Historical Data

The historical data trend for Computer Forms (Malaysia) 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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Computer Forms (Malaysia) Bhd ROC % Chart

Computer Forms (Malaysia) Bhd Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Sep24

ROC %

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-3.78

-0.63

2.96

1.54

-17.67

Computer Forms (Malaysia) Bhd Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-12.42	1.03	-14.28	-3.66	-34.95

Computer Forms (Malaysia) Bhd ROC % Calculation

Computer Forms (Malaysia) Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

	ROC % (A: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Sep. 2024 ))	/ count )
=	-4.671 * ( 1 - -3.46% )	/	( (20.053	+	34.636)	/ 2 )
=	-4.8326166	/	27.3445
=	-17.67 %

where

	Invested Capital		(A: Mar. 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	))
=	75.506	-	3.807	-	( 51.646	-	max(0, 9.083	-	72.344	+	51.646	))
=	20.053

	Invested Capital		(A: 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	))
=	130.347	-	4.472	-	( 91.239	-	max(0, 9.755	-	127.428	+	91.239	))
=	34.636

Computer Forms (Malaysia) 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 )
=	-13.948 * ( 1 - -0.25% )	/	( (45.383	+	34.636)	/ 2 )
=	-13.98287	/	40.0095
=	-34.95 %

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	))
=	133.967	-	4.732	-	( 83.852	-	max(0, 9.632	-	130.867	+	83.852	))
=	45.383

	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	))
=	130.347	-	4.472	-	( 91.239	-	max(0, 9.755	-	127.428	+	91.239	))
=	34.636

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

Computer Forms (Malaysia) Bhd (XKLS:8044) 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, Computer Forms (Malaysia) Bhd's WACC % is -3.65%. Computer Forms (Malaysia) Bhd's ROC % is -13.51% (calculated using TTM income statement data). Computer Forms (Malaysia) 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.

Computer Forms (Malaysia) Bhd ROC % Related Terms

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Computer Forms (Malaysia) Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Computer Forms (Malaysia) Bhd (XKLS:8044) » Definitions » ROC %

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Address

Lot 2, Jalan Usahawan 5, Off Jalan Genting Kelang, PKNS Setapak Industrial Area, Kuala Lumpur, MYS, 53300

Website

https://www.cfm.com.my

Computer Forms (Malaysia) Bhd is engaged in the printing and distributing of computer forms, stock forms, and specialized forms. The company operates through four segments namely Business forms and data print services, Commercial printing, Flexible packaging, and Business of property management. It generates maximum revenue from the Flexible packaging segment. Geographically, it derives a majority of its revenue from Malaysia and also has a presence in Indonesia. It offers various products such as general computer forms, security forms, mail/pressure seal mailers, stock forms, and optical mark recognition/optical character recognition forms.

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