Gadang Holdings Bhd (XKLS:9261) ROC % : 2.23% (As of Nov. 2024)

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What is Gadang 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 %. Gadang Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was 2.23%.

As of today (2025-04-04), Gadang Holdings Bhd's WACC % is 5.05%. Gadang Holdings Bhd's ROC % is 0.48% (calculated using TTM income statement data). Gadang Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gadang Holdings Bhd ROC % Historical Data

The historical data trend for Gadang 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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Gadang Holdings Bhd ROC % Chart

Gadang Holdings Bhd Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

ROC %

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3.11

1.60

4.15

1.10

0.05

Gadang Holdings Bhd Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial															0.11	0.89	0.18	0.86	2.23

Gadang Holdings Bhd ROC % Calculation

Gadang Holdings 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 )
=	16.048 * ( 1 - 96.58% )	/	( (1055.708	+	985.148)	/ 2 )
=	0.5488416	/	1020.428
=	0.05 %

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	))
=	1389.173	-	222.135	-	( 111.33	-	max(0, 327.501	-	1072.52	+	111.33	))
=	1055.708

	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	))
=	1388.284	-	292.196	-	( 110.94	-	max(0, 438.826	-	1083.892	+	110.94	))
=	985.148

Gadang Holdings 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 )
=	37.672 * ( 1 - 43.1% )	/	( (927.323	+	999.237)	/ 2 )
=	21.435368	/	963.28
=	2.23 %

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	))
=	1393.471	-	298.14	-	( 168.008	-	max(0, 444.17	-	1093.77	+	168.008	))
=	927.323

	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	))
=	1476.413	-	283.921	-	( 193.255	-	max(0, 498.19	-	1180.483	+	193.255	))
=	999.237

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

Gadang Holdings Bhd (XKLS:9261) 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, Gadang Holdings Bhd's WACC % is 5.05%. Gadang Holdings Bhd's ROC % is 0.48% (calculated using TTM income statement data). Gadang 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.

Gadang Holdings Bhd ROC % Related Terms

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Gadang Holdings Bhd Business Description

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Address

Wisma Gadang, Number 52 Jalan Tago 2, Off Jalan Persiaran Utama, Sri Damansara, Kuala Lumpur, SGR, MYS, 52200

Website

https://www.gadang.com.my

Gadang Holdings Bhd is an investment holding company. The company's operating segment includes Construction; Property; Utility and Investment holding and Other. It generates maximum revenue from the Construction division segment. The construction division segment is engaged in civil engineering works encompassing earthworks, infrastructure works, hospitals and mechanical and electrical works. The Property division segment is engaged in the development of residential and commercial properties. Its Utility division segment includes construction, maintenance and management of water and power supply facilities. Geographically, the company derives revenue from Malaysia, Indonesia, and Singapore. It derives a majority of its revenue from Malaysia.

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