Sarawak Consolidated Industries Bhd (XKLS:9237) ROC % : -7.92% (As of Sep. 2024)

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What is Sarawak Consolidated Industries 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 %. Sarawak Consolidated Industries Bhd's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -7.92%.

As of today (2024-12-12), Sarawak Consolidated Industries Bhd's WACC % is -0.70%. Sarawak Consolidated Industries Bhd's ROC % is 1.75% (calculated using TTM income statement data). Sarawak Consolidated Industries Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Sarawak Consolidated Industries Bhd ROC % Historical Data

The historical data trend for Sarawak Consolidated Industries 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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Sarawak Consolidated Industries Bhd ROC % Chart

Sarawak Consolidated Industries Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Jun21

Jun22

Jun23

Jun24

ROC %

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2.22

-35.67

-21.34

-2.04

3.33

Sarawak Consolidated Industries Bhd Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															3.15	2.41	2.24	4.36	-7.92

Sarawak Consolidated Industries Bhd ROC % Calculation

Sarawak Consolidated Industries 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 )
=	8.816 * ( 1 - 37.2% )	/	( (108.497	+	223.938)	/ 2 )
=	5.536448	/	166.2175
=	3.33 %

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	))
=	188.747	-	50.562	-	( 29.688	-	max(0, 82.308	-	139.484	+	29.688	))
=	108.497

	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	))
=	285.348	-	37.102	-	( 24.308	-	max(0, 81.805	-	147.932	+	24.308	))
=	223.938

Sarawak Consolidated Industries 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 )
=	2.268 * ( 1 - 851.06% )	/	( (223.938	+	205.953)	/ 2 )
=	-17.0340408	/	214.9455
=	-7.92 %

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	))
=	285.348	-	37.102	-	( 24.308	-	max(0, 81.805	-	147.932	+	24.308	))
=	223.938

	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	))
=	284.16	-	48.79	-	( 29.417	-	max(0, 82.082	-	147.216	+	29.417	))
=	205.953

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

Sarawak Consolidated Industries Bhd (XKLS:9237) 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, Sarawak Consolidated Industries Bhd's WACC % is -0.70%. Sarawak Consolidated Industries Bhd's ROC % is 1.75% (calculated using TTM income statement data). Sarawak Consolidated Industries Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Sarawak Consolidated Industries Bhd ROC % Related Terms

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Sarawak Consolidated Industries Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Sarawak Consolidated Industries Bhd (XKLS:9237) » Definitions » ROC %

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Address

Lot 1258, Jalan Utama, Pending Industrial Estate, Kuching, SWK, MYS, 93450

Website

https://www.scib.com.my

Sarawak Consolidated Industries Bhd is an investment holding company. The company's business segments are manufacturing, property trading, Corporate and Construction/EPCC/Project Management Segment. It generates maximum revenue from the Manufacturing segment. Manufacturing Segment involved in the manufacturing and sale of precast concrete pipes, prestressed spun concrete piles and other related concrete products as well as the manufacturing, supplying and installations of prefabricated Lightweight Systems products. Geographically it derives majority of revenue from Malaysia and also in presence in Indonesia, Oman and Qatar.

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