Perak Bhd (XKLS:8346) ROC % : 1.24% (As of Sep. 2024)

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What is Perak 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 %. Perak Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.24%.

As of today (2024-12-13), Perak Bhd's WACC % is 6.41%. Perak Bhd's ROC % is 4.16% (calculated using TTM income statement data). Perak Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Perak Bhd ROC % Historical Data

The historical data trend for Perak 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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Perak Bhd ROC % Chart

Perak Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.53

-0.56

12.29

8.60

5.13

Perak 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															3.56	8.40	2.18	5.30	1.24

Perak Bhd ROC % Calculation

Perak 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 )
=	40.981 * ( 1 - 39.51% )	/	( (499.174	+	467.812)	/ 2 )
=	24.7894069	/	483.493
=	5.13 %

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	))
=	526.659	-	89.827	-	( 49.172	-	max(0, 236.837	-	174.495	+	49.172	))
=	499.174

	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	))
=	540.184	-	103.066	-	( 39.051	-	max(0, 215.675	-	184.981	+	39.051	))
=	467.812

Perak 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 )
=	12.836 * ( 1 - 58.36% )	/	( (427.232	+	434.05)	/ 2 )
=	5.3449104	/	430.641
=	1.24 %

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	))
=	548.239	-	149.963	-	( 20.871	-	max(0, 201.223	-	172.267	+	20.871	))
=	427.232

	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	))
=	554.016	-	152.163	-	( 16.22	-	max(0, 204.476	-	172.279	+	16.22	))
=	434.05

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

Perak Bhd (XKLS:8346) 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, Perak Bhd's WACC % is 6.41%. Perak Bhd's ROC % is 4.16% (calculated using TTM income statement data). Perak 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.

Perak Bhd ROC % Related Terms

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Perak Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Perak Corp Bhd (XKLS:8346) » Definitions » ROC %

Traded in Other Exchanges

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Address

Jalan Meru Casuarina, No. 1-A, Blok B, Menara PKNP, Bandar Meru Raya, Ipoh, PRK, MYS, 30020

Website

http://www.perakcorp.com.my

Perak Corp Bhd is an investment holding company focused on Ports and logistics, Property development, Hospitality and tourism and Management services and others business segments. Ports and logistics segment includes maritime services in respect of the development of an integrated privatised project and encompassing operations of multipurpose port facilities, operation and maintenance of a bulk terminal, sales and rental of port related land and other activities; Property development includes Township development of real property and ancillary services; Hospitality and tourism segment includes Hotelier, restaurateur and theme park; Management services and others includes Provision of management services and other business segments which include property investment and distribution.

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