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Jaya Tiasa Holdings Bhd (XKLS:4383) ROIC % : 17.48% (As of Sep. 2024)


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What is Jaya Tiasa Holdings Bhd 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 %. Jaya Tiasa Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 17.48%.

As of today (2024-12-12), Jaya Tiasa Holdings Bhd's WACC % is 16.79%. Jaya Tiasa Holdings Bhd's ROIC % is 9.52% (calculated using TTM income statement data). Jaya Tiasa Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Jaya Tiasa Holdings Bhd ROIC % Historical Data

The historical data trend for Jaya Tiasa Holdings 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.

* Premium members only.

Jaya Tiasa Holdings Bhd ROIC % Chart

Jaya Tiasa Holdings Bhd Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.43 2.58 7.46 10.01 9.38

Jaya Tiasa Holdings Bhd Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.69 11.27 2.38 2.44 17.48

Competitive Comparison of Jaya Tiasa Holdings Bhd's ROIC %

For the Farm Products subindustry, Jaya Tiasa Holdings 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.


Jaya Tiasa Holdings Bhd's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Jaya Tiasa Holdings Bhd's ROIC % distribution charts can be found below:

* The bar in red indicates where Jaya Tiasa Holdings Bhd's ROIC % falls into.



Jaya Tiasa Holdings Bhd ROIC % Calculation

Jaya Tiasa Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROIC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=242.078 * ( 1 - 35.6% )/( (1673.03 + 1649.785)/ 2 )
=155.898232/1661.4075
=9.38 %

where

Invested Capital(A: Jun. 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))
=1954.5 - 73.122 - ( 232.518 - max(0, 135.595 - 343.943+232.518))
=1673.03

Invested Capital(A: Jun. 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))
=1978.906 - 79.091 - ( 283.207 - max(0, 146.112 - 396.142+283.207))
=1649.785

Jaya Tiasa Holdings Bhd'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: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=403.104 * ( 1 - 28.57% )/( (1649.785 + 1644.802)/ 2 )
=287.9371872/1647.2935
=17.48 %

where

Invested Capital(Q: Jun. 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))
=1978.906 - 79.091 - ( 283.207 - max(0, 146.112 - 396.142+283.207))
=1649.785

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))
=1969.603 - 96.312 - ( 228.489 - max(0, 155.142 - 414.381+228.489))
=1644.802

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.


Jaya Tiasa Holdings Bhd  (XKLS:4383) 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, Jaya Tiasa Holdings Bhd's WACC % is 16.79%. Jaya Tiasa Holdings Bhd's ROIC % is 9.52% (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.


Jaya Tiasa Holdings Bhd ROIC % Related Terms

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Jaya Tiasa Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
No.1-9, Pusat Suria Permata, Lorong Upper Lanang 10A, Sibu, SWK, MYS, 96000
Jaya Tiasa Holdings Bhd is an investment holding company, engaged in the development of oil palm plantations. The business activity of the group is breakdown into various segments which include logs trading, oil palm, oil mill, and others. Through its subsidiaries, the company manufactures a product such as sawn timber, blockboard, plywood, veneer, and related products. In addition, the firm also provides air transportation services and it is further engaged in the development of oil palm plantations. The majority of the firm's revenue gets derived from the oil mill operations.

Jaya Tiasa Holdings Bhd Headlines

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