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Mst Golf group Bhd (XKLS:5316) ROIC % : 1.93% (As of Sep. 2024)


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What is Mst Golf group 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 %. Mst Golf group Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 1.93%.

As of today (2024-12-13), Mst Golf group Bhd's WACC % is 7.66%. Mst Golf group Bhd's ROIC % is 2.41% (calculated using TTM income statement data). Mst Golf group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Mst Golf group Bhd ROIC % Historical Data

The historical data trend for Mst Golf 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.

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Mst Golf group Bhd ROIC % Chart

Mst Golf group Bhd Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
12.51 17.66 25.53 22.47 8.35

Mst Golf group Bhd Quarterly Data
Dec19 Dec20 Dec21 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 3.01 4.76 0.36 2.47 1.93

Competitive Comparison of Mst Golf group Bhd's ROIC %

For the Specialty Retail subindustry, Mst Golf 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.


Mst Golf group Bhd's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Mst Golf group Bhd's ROIC % distribution charts can be found below:

* The bar in red indicates where Mst Golf group Bhd's ROIC % falls into.



Mst Golf group Bhd ROIC % Calculation

Mst Golf group 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 )
=29.968 * ( 1 - 36.27% )/( (188.225 + 269.482)/ 2 )
=19.0986064/228.8535
=8.35 %

where

Invested Capital(A: Dec. 2022 )
=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))
=258.731 - 41.622 - ( 28.884 - max(0, 108.104 - 166.943+28.884))
=188.225

Invested Capital(A: Dec. 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))
=412.717 - 23.942 - ( 119.293 - max(0, 91.306 - 300.872+119.293))
=269.482

Mst Golf group 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 )
=13.272 * ( 1 - 55.94% )/( (315.472 + 290.521)/ 2 )
=5.8476432/302.9965
=1.93 %

where

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.


Mst Golf group Bhd  (XKLS:5316) 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, Mst Golf group Bhd's WACC % is 7.66%. Mst Golf group Bhd's ROIC % is 2.41% (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.


Mst Golf group Bhd ROIC % Related Terms

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Mst Golf group Bhd Business Description

Traded in Other Exchanges
N/A
Address
No. 8, Jalan SS 13/5, MST Golf Plaza, Subang Jaya, SGR, MYS, 47500
Mst Golf group Bhd is principally an investment holding company whilst its Subsidiaries are principally engaged in the specialty retail and wholesale of golf equipment comprising golf clubs, golf balls and accessories and golf apparel in Malaysia and Singapore. In addition, the company also offers golf-related services including golf coaching, rental of golf equipment mainly golf clubs and golf accessories at its pro shops at golf and country clubs and supply of range balls for use at the driving range that it operates, event management and planning for golf tournament-related events as well as operating indoor golf centers.

Mst Golf group Bhd Headlines

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