Permaju Industries Bhd (XKLS:7080) ROC % : -1.79% (As of Mar. 2024)

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What is Permaju Industries 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 %. Permaju Industries Bhd's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -1.79%.

As of today (2024-06-06), Permaju Industries Bhd's WACC % is 8.23%. Permaju Industries Bhd's ROC % is -6.80% (calculated using TTM income statement data). Permaju Industries Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Permaju Industries Bhd ROC % Historical Data

The historical data trend for Permaju Industries 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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Permaju Industries Bhd ROC % Chart

Permaju Industries Bhd Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Jun20

Jun21

Jun22

Jun23

ROC %

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-3.86

-6.38

-23.11

-14.50

-8.06

Permaju Industries 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															-9.00	-21.19	-4.03	-2.52	-1.79

Permaju Industries Bhd ROC % Calculation

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

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-20.901 * ( 1 - -2.97% )	/	( (261.005	+	272.705)	/ 2 )
=	-21.5217597	/	266.855
=	-8.06 %

where

	Invested Capital		(A: Jun. 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	))
=	308.424	-	10.286	-	( 37.133	-	max(0, 12.367	-	62.363	+	37.133	))
=	261.005

	Invested Capital		(A: Jun. 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	))
=	294.266	-	10.314	-	( 11.247	-	max(0, 12.373	-	53.845	+	11.247	))
=	272.705

Permaju Industries 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 )
=	-4.888 * ( 1 - -0.04% )	/	( (274.991	+	271.24)	/ 2 )
=	-4.8899552	/	273.1155
=	-1.79 %

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	))
=	291.469	-	8.048	-	( 8.43	-	max(0, 9.25	-	58.324	+	8.43	))
=	274.991

	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	))
=	288.776	-	10.701	-	( 6.835	-	max(0, 11.903	-	56.21	+	6.835	))
=	271.24

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

Permaju Industries Bhd (XKLS:7080) 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, Permaju Industries Bhd's WACC % is 8.23%. Permaju Industries Bhd's ROC % is -6.80% (calculated using TTM income statement data). Permaju Industries 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.

Permaju Industries Bhd ROC % Related Terms

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Permaju Industries Bhd (XKLS:7080) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Permaju Industries Bhd (XKLS:7080) » Definitions » ROC %

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Traded in Other Exchanges

7080PA.PFD:Malaysia

Address

Lot 45182, Sungai Penchala, Off Jalan Damansara, Wisma Cergaz, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 60000

Website

https://www.permaju.com.my

Permaju Industries Bhd is Malaysia-based investment holding firm. The company is engaged in the sales and distribution of automobile vehicles. The company operates in five business segments namely; Timber segment comprises of sale of timber logs and related timber products and holding of timber concession and tree plantation, Automotive comprises of sale and distribution of motor vehicles and provision of related services which also contributes a majorly in revenue, Property segment consists of development and construction of property, EV Division consists of Rental of luxury EV motor vehicles and Other segment involved in group level corporate services and investment holding activity. Majority of its revenue comes from the Malaysian market.

Permaju Industries Bhd (XKLS:7080) Headlines

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