ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. WS-SK Target Group's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2024 was 0.00%.
As of today (2025-03-28), WS-SK Target Group's WACC % is 5.28%. WS-SK Target Group's ROIC % is 1.50% (calculated using TTM income statement data).
WS-SK Target Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
WS-SK Target Group ROIC % Historical Data
The historical data trend for WS-SK Target Group's ROIC % 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.
Competitive Comparison of WS-SK Target Group's ROIC %
For the Building Materials subindustry, WS-SK Target Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
WS-SK Target Group's ROIC % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, WS-SK Target Group's ROIC % distribution charts can be found below:
* The bar in red indicates where WS-SK Target Group's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Nov. 2024) data.
* 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.
WS-SK Target Group (HKSE:08427) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, WS-SK Target Group's WACC % is 5.28%. WS-SK Target Group's ROIC % is 1.50% (calculated using TTM income statement data).
Be Aware
Like ROE % and ROA %, ROIC % 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.
WS-SK Target Group ROIC % Related Terms
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WS-SK Target Group Ltd formerly, SK Target Group Ltd is an investment holding company. The principal activities of the company are manufacturing and trading of precast concrete junction boxes, trading of accessories and pipes and provision of mobile crane rental and ancillary services in Malaysia, sourcing service of materials in Hong Kong. The company has two segments: Manufacturing and trading which involves manufacturing and trading of precast concrete junction boxes; and Other building materials and services which involves trading of accessories and pipes and provision of mobile crane rental and ancillary services; Geographically, it derives a majority of revenue from Malaysia.
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