ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Cloudaron Group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -17.01%.
As of today (2025-04-06), Cloudaron Group Bhd's WACC % is 6.21%. Cloudaron Group Bhd's ROIC % is -31.51% (calculated using TTM income statement data).
Cloudaron Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cloudaron Group Bhd ROIC % Historical Data
The historical data trend for Cloudaron Group 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 Cloudaron Group Bhd's ROIC %
For the Software - Infrastructure subindustry, Cloudaron Group 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.
Cloudaron Group Bhd's ROIC % Distribution in the Software Industry
For the Software industry and Technology sector, Cloudaron Group Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Cloudaron Group Bhd's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Cloudaron Group Bhd (XKLS:03001) 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, Cloudaron Group Bhd's WACC % is 6.21%. Cloudaron Group Bhd's ROIC % is -31.51% (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.
Cloudaron Group Bhd ROIC % Related Terms
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Cloudaron Group Bhd is a Malaysia-based company that acts as a digital platforms provider. It develops and delivers cloud-based solutions in Malaysia, Singapore, and the rest of Asia Pacific. The company offers services like information technology infrastructure, solution transformation services, infrastructure software, and others. Its reportable segments are; Enterprise solutions, Digital platforms, Infrastructure services, and Others. Maximum revenue is generated from its Digital platforms segment which includes its offering of proptech platforms, cloudtech platforms, and AI solutions aggregating various digital services provided by the group. Geographically, the company derives a majority of its revenue from its customers in Singapore followed by Thailand, Malaysia, and North America.
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