SAM Engineering & Equipment (M) Bhd (XKLS:9822) ROC % : 8.74% (As of Dec. 2024)

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What is SAM Engineering & Equipment (M) 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 %. SAM Engineering & Equipment (M) Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 8.74%.

As of today (2025-03-03), SAM Engineering & Equipment (M) Bhd's WACC % is 11.29%. SAM Engineering & Equipment (M) Bhd's ROC % is 6.65% (calculated using TTM income statement data). SAM Engineering & Equipment (M) Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SAM Engineering & Equipment (M) Bhd ROC % Historical Data

The historical data trend for SAM Engineering & Equipment (M) 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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SAM Engineering & Equipment (M) Bhd ROC % Chart

SAM Engineering & Equipment (M) Bhd Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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12.25

7.03

8.61

8.34

8.10

SAM Engineering & Equipment (M) Bhd Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															9.89	7.99	2.87	6.87	8.74

SAM Engineering & Equipment (M) Bhd ROC % Calculation

SAM Engineering & Equipment (M) Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	175.398 * ( 1 - 24.5% )	/	( (1409.517	+	1858.294)	/ 2 )
=	132.42549	/	1633.9055
=	8.10 %

where

	Invested Capital		(A: Mar. 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	))
=	1607.637	-	177.075	-	( 21.045	-	max(0, 679.624	-	1043.657	+	21.045	))
=	1409.517

	Invested Capital		(A: Mar. 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	))
=	2067.216	-	172.678	-	( 36.244	-	max(0, 573.13	-	1198.002	+	36.244	))
=	1858.294

SAM Engineering & Equipment (M) Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	159.744 * ( 1 - 12.91% )	/	( (1533.321	+	1649.401)	/ 2 )
=	139.1210496	/	1591.361
=	8.74 %

where

	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	))
=	1848.891	-	272.058	-	( 43.512	-	max(0, 372.827	-	1060.247	+	43.512	))
=	1533.321

	Invested Capital		(Q: Dec. 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	))
=	1929.035	-	254.863	-	( 24.771	-	max(0, 396.299	-	1130.84	+	24.771	))
=	1649.401

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

SAM Engineering & Equipment (M) Bhd (XKLS:9822) 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, SAM Engineering & Equipment (M) Bhd's WACC % is 11.29%. SAM Engineering & Equipment (M) Bhd's ROC % is 6.65% (calculated using TTM income statement data). SAM Engineering & Equipment (M) 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.

SAM Engineering & Equipment (M) Bhd ROC % Related Terms

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SAM Engineering & Equipment (M) Bhd Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » SAM Engineering & Equipment (M) Bhd (XKLS:9822) » Definitions » ROC %

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Address

Plot 17, Hilir Sungai Keluang Tiga, Bayan Lepas Free Industrial Zone, Phase 4, Bayan Lepas, PNG, MYS, 11900

Website

https://www.sam-malaysia.com

SAM Engineering & Equipment (M) Bhd is a Malaysian company that provides precision machining, equipment integration, and automation solutions to aerospace and equipment industries. The company is engaged in providing manufacturing solutions for critical engine parts and other related equipment parts and also on engineering and high precision tooling including large format CNC machining parts. It also provides for the arrangement of equipment engineering and solutions for commercial, semiconductor, and other industries. The company manages its business in two segments namely Aerospace and Equipment manufacturing. It has a business presence in Malaysia and other international countries.

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