Willas-Array Electronics Holdings (SGX:BDR) ROIC % : -8.83% (As of Sep. 2024)

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What is Willas-Array Electronics Holdings ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Willas-Array Electronics Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -8.83%.

As of today (2024-12-14), Willas-Array Electronics Holdings's WACC % is 4.95%. Willas-Array Electronics Holdings's ROIC % is -8.96% (calculated using TTM income statement data). Willas-Array Electronics Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Willas-Array Electronics Holdings ROIC % Historical Data

The historical data trend for Willas-Array Electronics Holdings'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.

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Willas-Array Electronics Holdings ROIC % Chart

Willas-Array Electronics Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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-0.83

9.47

8.14

3.62

-7.97

Willas-Array Electronics Holdings Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROIC %	Get a 7-Day Free Trial															7.91	1.55	-6.43	-9.38	-8.83

Competitive Comparison of Willas-Array Electronics Holdings's ROIC %

For the Electronics & Computer Distribution subindustry, Willas-Array Electronics Holdings'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.

Willas-Array Electronics Holdings's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Willas-Array Electronics Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Willas-Array Electronics Holdings's ROIC % falls into.

Willas-Array Electronics Holdings ROIC % Calculation

Willas-Array Electronics Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROIC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-16.057 * ( 1 - 0.42% )	/	( (221.534	+	179.644)	/ 2 )
=	-15.9895606	/	200.589
=	-7.97 %

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	))
=	344.623	-	68.908	-	( 54.181	-	max(0, 220.823	-	294.278	+	54.181	))
=	221.534

	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	))
=	320.449	-	129.005	-	( 11.8	-	max(0, 229.866	-	275.876	+	11.8	))
=	179.644

Willas-Array Electronics Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-18.668 * ( 1 - 11.7% )	/	( (179.644	+	193.593)	/ 2 )
=	-16.483844	/	186.6185
=	-8.83 %

where

	Invested Capital		(Q: 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	))
=	320.449	-	129.005	-	( 11.8	-	max(0, 229.866	-	275.876	+	11.8	))
=	179.644

	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	))
=	261.208	-	58.176	-	( 9.439	-	max(0, 184.602	-	219.297	+	9.439	))
=	193.593

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

Willas-Array Electronics Holdings (SGX:BDR) 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, Willas-Array Electronics Holdings's WACC % is 4.95%. Willas-Array Electronics Holdings's ROIC % is -8.96% (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.

Willas-Array Electronics Holdings ROIC % Related Terms

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Willas-Array Electronics Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Willas-Array Electronics Holdings Ltd (SGX:BDR) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 Tai Lin Pai Road, 24th Floor, Wyler Centre, Phase 2, Kwai Chung, New Territories, Hong Kong, HKG

Website

https://www.willas-array.com

Willas-Array Electronics Holdings Ltd is engaged in the distribution of electronic components for use in the industrial, audio and video, telecommunications, home appliances, and lighting, as well as providing engineering solutions. The group has a business presence in the Southern China Region, Northern China Region, and Taiwan. It has market segments are Automotive, Home Appliance, Industrial segments, Electronic Manufacturing Services, Dealer, Telecommunications, Audio and Video, Lighting, and Others.

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