Mudajaya Group Bhd (XKLS:5085) ROC % : -0.33% (As of Mar. 2024)

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What is Mudajaya Group Bhd ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Mudajaya Group Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -0.33%.

As of today (2024-06-06), Mudajaya Group Bhd's WACC % is 5.58%. Mudajaya Group Bhd's ROC % is -2.52% (calculated using TTM income statement data). Mudajaya Group Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mudajaya Group Bhd ROC % Historical Data

The historical data trend for Mudajaya Group Bhd's ROC % 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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Mudajaya Group Bhd ROC % Chart

Mudajaya Group Bhd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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5.43

-0.92

0.04

0.58

-2.26

Mudajaya Group Bhd Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															0.36	-4.30	-1.70	-5.42	-0.33

Mudajaya Group Bhd ROC % Calculation

Mudajaya Group Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-19.767 * ( 1 - -48.53% )	/	( (1308.066	+	1285.972)	/ 2 )
=	-29.3599251	/	1297.019
=	-2.26 %

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	))
=	1923.762	-	384.402	-	( 231.294	-	max(0, 693.399	-	1292.024	+	231.294	))
=	1308.066

	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	))
=	2180.297	-	561.011	-	( 333.314	-	max(0, 1175.159	-	1537.847	+	333.314	))
=	1285.972

Mudajaya Group Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-2.9 * ( 1 - -52.54% )	/	( (1285.972	+	1399.859)	/ 2 )
=	-4.42366	/	1342.9155
=	-0.33 %

where

	Invested Capital		(Q: 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	))
=	2180.297	-	561.011	-	( 333.314	-	max(0, 1175.159	-	1537.847	+	333.314	))
=	1285.972

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	2090.173	-	474.007	-	( 216.307	-	max(0, 1065.753	-	1454.076	+	216.307	))
=	1399.859

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Mudajaya Group Bhd (XKLS:5085) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Mudajaya Group Bhd's WACC % is 5.58%. Mudajaya Group Bhd's ROC % is -2.52% (calculated using TTM income statement data). Mudajaya Group 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 %, ROC % 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.

Mudajaya Group Bhd ROC % Related Terms

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Mudajaya Group Bhd (XKLS:5085) Business Description

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Address

Number 12A, Jalan PJU 7/3, PH1, Menara Mudajaya, Mutiara Damansara, Petaling Jaya, MYS, 47810

Website

https://www.mudajaya.com

Mudajaya Group Bhd along with its subsidiaries, the firm operates in four reportable segments including Construction contracts, Property, Power, Trading, and manufacturing. The construction contracts segment is engaged in undertaking engineering, construction works, and equipment procurement. The property segment develops residential and commercial properties. The power segment is engaged in the sale of power energy. And Trading and manufacturing segment is engaged in the sales and manufacturing of construction-related products. It operates in Malaysia, Indonesia, India, the Republic of Mauritius, and Negara Brunei Darussalam. The company generates the majority of its revenue from the Construction contracts segment.

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