ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ancom Nylex Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2024 was 6.04%.
As of today (2025-04-10), Ancom Nylex Bhd's WACC % is 5.70%. Ancom Nylex Bhd's ROIC % is 9.45% (calculated using TTM income statement data).
Ancom Nylex 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.
Ancom Nylex Bhd ROIC % Historical Data
The historical data trend for Ancom Nylex 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 Ancom Nylex Bhd's ROIC %
For the Specialty Chemicals subindustry, Ancom Nylex 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.
Ancom Nylex Bhd's ROIC % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ancom Nylex Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Ancom Nylex Bhd's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Nov. 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.
Ancom Nylex Bhd (XKLS:4758) 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, Ancom Nylex Bhd's WACC % is 5.70%. Ancom Nylex Bhd's ROIC % is 9.45% (calculated using TTM income statement data).
Ancom Nylex 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.
Ancom Nylex 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.
Ancom Nylex Bhd ROIC % Related Terms
Thank you for viewing the detailed overview of Ancom Nylex Bhd's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ancom Nylex Bhd is an investment holding company. Its operating segment includes Investment holding; Agricultural chemicals; Industrial chemicals; Logistics; Polymer and Others. It generates maximum revenue from the Industrial chemicals segment. The Industrial chemicals segment is engaged in the manufacture, trading, and sale of industrial chemical products. Geographically, it derives a majority of revenue from Malaysia and also has a presence in Singapore; Indonesia; Other Southeast Asian countries; Other Asian countries; Australia and New Zealand; North and South America; Africa, and Europe.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XKLS:4758 has been successfully added to your 