Megatouch Co (XKRX:446540) ROC % : 10.83% (As of Sep. 2024)

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What is Megatouch Co 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 %. Megatouch Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 10.83%.

As of today (2024-12-12), Megatouch Co's WACC % is 8.21%. Megatouch Co's ROC % is 4.60% (calculated using TTM income statement data). Megatouch Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Megatouch Co ROC % Historical Data

The historical data trend for Megatouch Co'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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Megatouch Co ROC % Chart

Megatouch Co Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

9.35

20.16

-0.17

Megatouch Co Quarterly Data
	Jun22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial			5.29	-6.39	5.20	9.39	10.83

Megatouch Co ROC % Calculation

Megatouch Co'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 )
=	-252.673 * ( 1 - 70.77% )	/	( (37243.868	+	51092.588)	/ 2 )
=	-73.8563179	/	44168.228
=	-0.17 %

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	))
=	41946.83	-	4148.816	-	( 554.146	-	max(0, 16783.48	-	23087.631	+	554.146	))
=	37243.868

	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	))
=	66726.648	-	2222.87	-	( 13411.19	-	max(0, 14914.538	-	40212.524	+	13411.19	))
=	51092.588

Megatouch Co'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 )
=	6011.172 * ( 1 - 20.11% )	/	( (44679.859	+	43976.136)	/ 2 )
=	4802.3253108	/	44327.9975
=	10.83 %

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	))
=	63169.497	-	4122.635	-	( 14367.003	-	max(0, 9131.851	-	37089.569	+	14367.003	))
=	44679.859

	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	))
=	63662.844	-	5002.55	-	( 14684.158	-	max(0, 9394.27	-	37786.911	+	14684.158	))
=	43976.136

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

Megatouch Co (XKRX:446540) 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, Megatouch Co's WACC % is 8.21%. Megatouch Co's ROC % is 4.60% (calculated using TTM income statement data). Megatouch Co 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.

Megatouch Co ROC % Related Terms

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Megatouch Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Megatouch Co Ltd (XKRX:446540) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

42 3gongdan 2-ro, Seobuk-gu, Cheonan-si, Chungcheongnam-do, KOR, 31093

Website

https://www.megatouch.co.kr

Megatouch Co Ltd develops, manufactures, and sells test PINs and CLIPs for battery charging and discharging, and PROBE PINs and ICT PINs for semiconductor tests .

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