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Khong Guan (SGX:K03) ROC (Joel Greenblatt) % : -3.00% (As of Jan. 2024)


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What is Khong Guan ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Khong Guan's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -3.00%.

The historical rank and industry rank for Khong Guan's ROC (Joel Greenblatt) % or its related term are showing as below:

SGX:K03' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -3.67   Med: 6.77   Max: 17.71
Current: -3.67

During the past 13 years, Khong Guan's highest ROC (Joel Greenblatt) % was 17.71%. The lowest was -3.67%. And the median was 6.77%.

SGX:K03's ROC (Joel Greenblatt) % is ranked worse than
86.94% of 314 companies
in the Retail - Defensive industry
Industry Median: 14.32 vs SGX:K03: -3.67

Khong Guan's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Khong Guan ROC (Joel Greenblatt) % Historical Data

The historical data trend for Khong Guan's ROC (Joel Greenblatt) % 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.

Khong Guan ROC (Joel Greenblatt) % Chart

Khong Guan Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.19 3.33 2.37 8.05 2.85

Khong Guan Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
ROC (Joel Greenblatt) % 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 1.41 14.57 9.56 -4.36 -3.00

Competitive Comparison of Khong Guan's ROC (Joel Greenblatt) %

For the Food Distribution subindustry, Khong Guan's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.


Khong Guan's ROC (Joel Greenblatt) % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Khong Guan's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Khong Guan's ROC (Joel Greenblatt) % falls into.



Khong Guan ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Jul. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11.299 + 7.892 + 0.331) - (7.511 + 0 + 0.945)
=11.066

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12.577 + 7.166 + 0.313) - (8.878 + 0 + 0)
=11.178

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Khong Guan for the quarter that ended in Jan. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.502/( ( (5.818 + max(11.066, 0)) + (5.439 + max(11.178, 0)) )/ 2 )
=-0.502/( ( 16.884 + 16.617 )/ 2 )
=-0.502/16.7505
=-3.00 %

Note: The EBIT data used here is two times the semi-annual (Jan. 2024) EBIT 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.


Khong Guan  (SGX:K03) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Khong Guan ROC (Joel Greenblatt) % Related Terms

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Khong Guan (SGX:K03) Business Description

Traded in Other Exchanges
N/A
Address
2 MacTaggart Road, Number 03-01, Khong Guan Building, Singapore, SGP, 368078
Khong Guan Ltd is a Singapore-based investment holding company. It operates its business in various segments that are Trading of Wheat Flour and Consumer Goods, which trades in Singapore and Malaysia; Investment Trading, which trades in shares mainly listed in Singapore and Malaysia; and Investment Holding, which holds shares for dividend income. The Trading of Wheat Flour and Consumer Goods segment generates maximum revenue for the company. Geographically, it derives a majority of revenue from Malaysia.

Khong Guan (SGX:K03) Headlines

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