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Rhone Ma Holdings Bhd (XKLS:5278) ROIC % : 10.53% (As of Dec. 2023)


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What is Rhone Ma 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 %. Rhone Ma Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 10.53%.

As of today (2024-05-07), Rhone Ma Holdings Bhd's WACC % is 5.13%. Rhone Ma Holdings Bhd's ROIC % is 7.66% (calculated using TTM income statement data). Rhone Ma Holdings 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.


Rhone Ma Holdings Bhd ROIC % Historical Data

The historical data trend for Rhone Ma 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.

Rhone Ma Holdings Bhd ROIC % Chart

Rhone Ma Holdings Bhd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.26 6.68 8.98 9.40 7.71

Rhone Ma Holdings Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 9.73 7.09 5.64 7.37 10.53

Competitive Comparison of Rhone Ma Holdings Bhd's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Rhone Ma 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.


Rhone Ma Holdings Bhd's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Rhone Ma Holdings Bhd's ROIC % distribution charts can be found below:

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



Rhone Ma Holdings Bhd ROIC % Calculation

Rhone Ma Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=19.855 * ( 1 - 29.27% )/( (180.065 + 184.175)/ 2 )
=14.0434415/182.12
=7.71 %

where

Rhone Ma Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=29.044 * ( 1 - 33.44% )/( (182.981 + 184.175)/ 2 )
=19.3316864/183.578
=10.53 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.


Rhone Ma Holdings Bhd  (XKLS:5278) 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, Rhone Ma Holdings Bhd's WACC % is 5.13%. Rhone Ma Holdings Bhd's ROIC % is 7.66% (calculated using TTM income statement data). Rhone Ma Holdings 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. Rhone Ma Holdings 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.


Rhone Ma Holdings Bhd ROIC % Related Terms

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Rhone Ma Holdings Bhd (XKLS:5278) Business Description

Traded in Other Exchanges
N/A
Address
Lot 18A & 18B, Jalan 241, Seksyen 51A, Petaling Jaya, SGR, MYS, 46100
Rhone Ma Holdings Bhd is an investment holding company and are engaged in the provision of management services. It operates through its subsidiaries so it offers animal health services as well as the manufacturing and distribution of animal health products. The operating segments of the group are Animal health products and equipment , Food ingredients, and Others. Animal health products and equipment segment includes marketing, trading, distribution and manufacturing of animal health products and undertaking research and development activities related to animal health, food safety and agriculture in animal health products. The animal health products offered include vaccines, pharmaceuticals, and feed additives. It is also involved in the distribution and supply of food ingredients.

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