Kim Hin Joo (Malaysia) Bhd (XKLS:0210) ROIC % : -4.83% (As of Dec. 2023)

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What is Kim Hin Joo (Malaysia) 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 %. Kim Hin Joo (Malaysia) Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -4.83%.

As of today (2024-05-12), Kim Hin Joo (Malaysia) Bhd's WACC % is 3.37%. Kim Hin Joo (Malaysia) Bhd's ROIC % is 0.06% (calculated using TTM income statement data). Kim Hin Joo (Malaysia) Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kim Hin Joo (Malaysia) Bhd ROIC % Historical Data

The historical data trend for Kim Hin Joo (Malaysia) 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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Kim Hin Joo (Malaysia) Bhd ROIC % Chart

Kim Hin Joo (Malaysia) Bhd Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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19.36

8.88

6.95

6.70

0.06

Kim Hin Joo (Malaysia) Bhd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															3.09	2.17	0.37	0.56	-4.83

Competitive Comparison of Kim Hin Joo (Malaysia) Bhd's ROIC %

For the Specialty Retail subindustry, Kim Hin Joo (Malaysia) 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.

Kim Hin Joo (Malaysia) Bhd's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Kim Hin Joo (Malaysia) Bhd's ROIC % distribution charts can be found below:

* The bar in red indicates where Kim Hin Joo (Malaysia) Bhd's ROIC % falls into.

Kim Hin Joo (Malaysia) Bhd ROIC % Calculation

Kim Hin Joo (Malaysia) Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	0.044 * ( 1 - -7.67% )	/	( (84.268	+	76.326)	/ 2 )
=	0.0473748	/	80.297
=	0.06 %

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	))
=	119.661	-	15.312	-	( 20.081	-	max(0, 26.695	-	87.987	+	20.081	))
=	84.268

	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	))
=	103.818	-	6.922	-	( 20.57	-	max(0, 18.56	-	80.243	+	20.57	))
=	76.326

Kim Hin Joo (Malaysia) Bhd's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-3.976 * ( 1 - 6.19% )	/	( (78.019	+	76.326)	/ 2 )
=	-3.7298856	/	77.1725
=	-4.83 %

where

	Invested Capital		(Q: Sep. 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	))
=	102.329	-	6.863	-	( 17.447	-	max(0, 17.736	-	75.998	+	17.447	))
=	78.019

	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	))
=	103.818	-	6.922	-	( 20.57	-	max(0, 18.56	-	80.243	+	20.57	))
=	76.326

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Kim Hin Joo (Malaysia) Bhd (XKLS:0210) 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, Kim Hin Joo (Malaysia) Bhd's WACC % is 3.37%. Kim Hin Joo (Malaysia) Bhd's ROIC % is 0.06% (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.

Kim Hin Joo (Malaysia) Bhd ROIC % Related Terms

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Kim Hin Joo (Malaysia) Bhd (XKLS:0210) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Kim Hin Joo (Malaysia) Bhd (XKLS:0210) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Perindustrian Balakong Jaya 1 /3, Lot 5205C, Wisma Pang Cheng Yean, Kawasan Perindustrian Balakong Jaya, Seri Kembangan, SGR, MYS, 43300

Website

https://www.khj-my.com

Kim Hin Joo (Malaysia) Bhd is principally involved in the retail and distribution of baby, children, and maternity products. The firm operates through two segments. The Retail segment engages in the retailing of babies, children, and maternity products. The Distribution segment comprises of distribution of children and maternity products. The group operates primarily in Malaysia.

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