ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. SIK Cheong Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.06%.
As of today (2026-06-30), SIK Cheong Bhd's WACC % is 10.38%. SIK Cheong Bhd's ROIC % is 11.34% (calculated using TTM income statement data).
SIK Cheong 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.
SIK Cheong Bhd (XKLS:0316) 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, SIK Cheong Bhd's WACC % is 10.38%. SIK Cheong Bhd's ROIC % is 11.34% (calculated using TTM income statement data).
SIK Cheong 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.
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.
SIK Cheong Bhd ROIC % Related Terms
SIK Cheong Bhd ROIC % Historical Data
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The historical data trend for SIK Cheong 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.
For the Packaged Foods subindustry, SIK Cheong 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.
SIK Cheong Bhd ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, SIK Cheong Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where SIK Cheong Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
SIK Cheong Bhd (XKLS:0316) has a ROIC % of 3.06% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on SIK Cheong Bhd and its competitors.
Is SIK Cheong Bhd's ROIC % too high?
SIK Cheong Bhd's current ROIC % is 3.06%. The Consumer Packaged Goods industry median ROIC % is 5.13. SIK Cheong Bhd's value of 3.06% is 40.4% below this industry median. Overall, SIK Cheong Bhd has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does SIK Cheong Bhd's ROIC % compare to KHC and GIS?
SIK Cheong Bhd's ROIC % of 3.06% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. SIK Cheong Bhd's value of 3.06% is 40.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,944 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SIK Cheong Bhd's current ROIC % of 3.06% is 40.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on SIK Cheong Bhd and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SIK Cheong Bhd's current ROIC % is 3.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SIK Cheong Bhd stock overvalued right now?
SIK Cheong Bhd (XKLS:0316) has a current ROIC % of 3.06%. The current ROIC % is 3.06% and 40.4% below the Consumer Packaged Goods industry median of 5.13. SIK Cheong Bhd's overall GF Score™ is 43/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For SIK Cheong Bhd (XKLS:0316), the current ROIC % is 3.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
SIK Cheong Bhd is involved in the repackaging, marketing and distribution of RBD palm olein oil products. Its products include RBD palm olein cooking oil, which are sold under brands, Sawit Emas and Vitamas, or sold unbranded and also sell RBD palm olein lamp oil under brand, Pingat Emas. The company products are consumed and used commercially and in households.
43GF Score
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