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CWG Holdings Bhd (XKLS:9423) ROIC % : -2.99% (As of Sep. 2024)


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What is CWG 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 %. CWG Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -2.99%.

As of today (2024-12-14), CWG Holdings Bhd's WACC % is 7.64%. CWG Holdings Bhd's ROIC % is -2.09% (calculated using TTM income statement data). CWG Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.


CWG Holdings Bhd ROIC % Historical Data

The historical data trend for CWG 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.

CWG Holdings Bhd ROIC % Chart

CWG 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 3.15 -1.54 1.96 6.19 -1.07

CWG 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 0.93 3.17 -4.01 -4.30 -2.99

Competitive Comparison of CWG Holdings Bhd's ROIC %

For the Paper & Paper Products subindustry, CWG 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.


CWG Holdings Bhd's ROIC % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, CWG Holdings Bhd's ROIC % distribution charts can be found below:

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



CWG Holdings Bhd ROIC % Calculation

CWG 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 )
=-1.41 * ( 1 - 22.3% )/( (101.428 + 103.802)/ 2 )
=-1.09557/102.615
=-1.07 %

where

CWG 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 )
=-3.6 * ( 1 - 14.9% )/( (103.802 + 101.164)/ 2 )
=-3.0636/102.483
=-2.99 %

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.


CWG Holdings Bhd  (XKLS:9423) 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, CWG Holdings Bhd's WACC % is 7.64%. CWG Holdings Bhd's ROIC % is -2.09% (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.


CWG Holdings Bhd ROIC % Related Terms

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CWG Holdings Bhd Business Description

Traded in Other Exchanges
N/A
Address
6428, Lorong Mak Mandin Tiga, Mak Mandin Industrial Estate, Butterworth, Seberang Perai, PNG, MYS, 13400
CWG Holdings Bhd is a Malaysia based investment holding company. Through its subsidiaries, the company is involved in the manufacture and sale of stationery and printing material. The products offered include spiral notebooks, pads, hardcover books, files, paper bags, gift wraps, and the publishing of children's books. The group has three segments namely, Manufacture and sale of stationery and printing materials, property development and Investment holding. The company geographically operates in Malaysia, Other Asian countries, Oceania, Europe, Africa and America. It generates majority of its revenue from Other Asian countries.

CWG Holdings Bhd Headlines

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