VisDynamics Holdings Bhd (XKLS:0120) ROIC % : -17.01% (As of Jan. 2024)

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What is VisDynamics 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 %. VisDynamics Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -17.01%.

As of today (2024-05-27), VisDynamics Holdings Bhd's WACC % is 11.01%. VisDynamics Holdings Bhd's ROIC % is 7.22% (calculated using TTM income statement data). VisDynamics Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

VisDynamics Holdings Bhd ROIC % Historical Data

The historical data trend for VisDynamics 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.

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VisDynamics Holdings Bhd ROIC % Chart

VisDynamics Holdings Bhd Annual Data

Trend

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

ROIC %

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21.96

11.01

5.98

25.56

22.69

VisDynamics Holdings Bhd Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Jan24
ROIC %	Get a 7-Day Free Trial															25.00	-31.60	28.24	16.79	-17.01

Competitive Comparison of VisDynamics Holdings Bhd's ROIC %

For the Semiconductor Equipment & Materials subindustry, VisDynamics 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.

VisDynamics Holdings Bhd's ROIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, VisDynamics Holdings Bhd's ROIC % distribution charts can be found below:

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

VisDynamics Holdings Bhd ROIC % Calculation

VisDynamics Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2022 is calculated as:

	ROIC % (A: Oct. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2021 )	+	Invested Capital (A: Oct. 2022 ))	/ count )
=	12.904 * ( 1 - 22.48% )	/	( (40.071	+	48.106)	/ 2 )
=	10.0031808	/	44.0885
=	22.69 %

where

	Invested Capital		(A: Oct. 2021 )
=	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	))
=	69.059	-	2.604	-	( 26.384	-	max(0, 12.472	-	53.264	+	26.384	))
=	40.071

	Invested Capital		(A: Oct. 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	))
=	81.422	-	1.921	-	( 31.395	-	max(0, 14.51	-	65.082	+	31.395	))
=	48.106

VisDynamics Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROIC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-6.212 * ( 1 - 0% )	/	( (38.184	+	34.839)	/ 2 )
=	-6.212	/	36.5115
=	-17.01 %

where

	Invested Capital		(Q: Jul. 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	))
=	75.185	-	7.054	-	( 29.947	-	max(0, 9.961	-	58.843	+	29.947	))
=	38.184

	Invested Capital		(Q: Jan. 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	))
=	74.564	-	4.616	-	( 35.109	-	max(0, 7.619	-	57.98	+	35.109	))
=	34.839

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

VisDynamics Holdings Bhd (XKLS:0120) 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, VisDynamics Holdings Bhd's WACC % is 11.01%. VisDynamics Holdings Bhd's ROIC % is 7.22% (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.

VisDynamics Holdings Bhd ROIC % Related Terms

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VisDynamics Holdings Bhd (XKLS:0120) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » VisDynamics Holdings Bhd (XKLS:0120) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lot 3844, Jalan TU 52, Kawasan Perindustrian Tasik Utama, Ayer Keroh, MLA, MYS, 75450

Website

http://www.vis-dynamics.com

VisDynamics Holdings Bhd is an investment holding company. It operates in two segments: The manufacturing segment includes Manufacturing of automated test equipment, and Others segment includes Investment holding and provision of management services. The company focuses on the design, research & development, and assembly of Back-end Semiconductor Equipment and high-speed transfer and inspection machine for Non-Semiconductor Devices. The company's geographical segments include Malaysia, South East Asia, North Asia, the United States, and Others, of which it generates the majority of its revenue from North Asia.

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