Federal International Holdings Bhd (XKLS:8605) ROC % : -2.29% (As of Sep. 2024)

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What is Federal International Holdings 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 %. Federal International Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -2.29%.

As of today (2024-12-13), Federal International Holdings Bhd's WACC % is 4.33%. Federal International Holdings Bhd's ROC % is -0.02% (calculated using TTM income statement data). Federal International Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Federal International Holdings Bhd ROC % Historical Data

The historical data trend for Federal International Holdings 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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Federal International Holdings Bhd ROC % Chart

Federal International Holdings Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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3.11

4.35

5.05

3.23

1.39

Federal International Holdings 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															0.98	2.70	-3.53	7.47	-2.29

Federal International Holdings Bhd ROC % Calculation

Federal International Holdings Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	2.847 * ( 1 - 34.15% )	/	( (139.321	+	130.575)	/ 2 )
=	1.8747495	/	134.948
=	1.39 %

where

	Invested Capital		(A: Jun. 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	))
=	194.176	-	28.673	-	( 26.182	-	max(0, 46.361	-	143.911	+	26.182	))
=	139.321

	Invested Capital		(A: 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	))
=	184.362	-	44.306	-	( 9.481	-	max(0, 68.541	-	135.042	+	9.481	))
=	130.575

Federal International Holdings 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 )
=	-2.764 * ( 1 - -8.38% )	/	( (130.575	+	130.498)	/ 2 )
=	-2.9956232	/	130.5365
=	-2.29 %

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	))
=	184.362	-	44.306	-	( 9.481	-	max(0, 68.541	-	135.042	+	9.481	))
=	130.575

	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	))
=	190.187	-	54.094	-	( 5.595	-	max(0, 76.42	-	141.239	+	5.595	))
=	130.498

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

Federal International Holdings Bhd (XKLS:8605) 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, Federal International Holdings Bhd's WACC % is 4.33%. Federal International Holdings Bhd's ROC % is -0.02% (calculated using TTM income statement data). Federal International Holdings 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.

Federal International Holdings Bhd ROC % Related Terms

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Federal International Holdings Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Federal International Holdings Bhd (XKLS:8605) » Definitions » ROC %

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8605PB.PFD:Malaysia

Address

No. 1B, Jalan Yong Shook Lin, Section 7, Level P1, Menara Choy Fook On, Petaling Jaya, SGR, MYS, 46050

Website

https://www.fihb.my

Federal International Holdings Bhd is a Malaysia-based company, which is engaged in the business of investment holding. It operates through four business segments: Manufacturing and Trading of Furniture, Renovation and Interior Design, Construction Business and Investment Holding. The firm is engaged in activities including renovation and interior fit-out works; trading of home furnishings, home appliances, general building materials and general contractors for construction works, and manufacturing and export of furniture. The firm derives its revenue mainly from the Construction Business segment. It principally operates in Malaysia.

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