ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Waja Konsortium Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 16.12%.
As of today (2024-12-14), Waja Konsortium Bhd's WACC % is 9.96%. Waja Konsortium Bhd's ROIC % is 12.54% (calculated using TTM income statement data).
Waja Konsortium Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Waja Konsortium Bhd ROIC % Historical Data
The historical data trend for Waja Konsortium Bhd'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 Waja Konsortium Bhd's ROIC %
For the Communication Equipment subindustry, Waja Konsortium Bhd'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.
Waja Konsortium Bhd's ROIC % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Waja Konsortium Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Waja Konsortium Bhd's ROIC % falls into.
Waja Konsortium Bhd ROIC % Calculation
Waja Konsortium Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Sep. 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.
Waja Konsortium Bhd (XKLS:0102) 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, Waja Konsortium Bhd's WACC % is 9.96%. Waja Konsortium Bhd's ROIC % is 12.54% (calculated using TTM income statement data).
Waja Konsortium Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Waja Konsortium 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 %, 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.
Waja Konsortium Bhd ROIC % Related Terms
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No. 20-2, Jalan 2/125, Pusat Perdagangan Salak II, KL Eco City, Hexa Commercial Centre, Taman Desa Petaling, Wilayah Persekutuan, Kuala Lumpur, MYS, 57100
Waja Konsortium Bhd is an investment holding company. The company operates in two main sectors; General Construction and Property Development, as well as Information and Communication Technology. Along with its subsidiaries, the company operates in the following segments Construction, Investment holding and others, Information and communication technology (ICT). A majority of its revenue is generated from the Construction segment which performs general construction works. Through its Information and communication technology segment, the company provides maintenance, support systems, implementation, and system-related consultancy services for IT solutions and IOT infrastructures. Geographically, the company derives a majority of its revenue from Malaysia.
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