ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kumpulan Jetson Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 0.77%.
As of today (2024-10-09), Kumpulan Jetson Bhd's WACC % is 2.19%. Kumpulan Jetson Bhd's ROIC % is -0.92% (calculated using TTM income statement data).
Kumpulan Jetson Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kumpulan Jetson Bhd ROIC % Historical Data
The historical data trend for Kumpulan Jetson 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.
Competitive Comparison of Kumpulan Jetson Bhd's ROIC %
For the Specialty Chemicals subindustry, Kumpulan Jetson 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.
Kumpulan Jetson Bhd's ROIC % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kumpulan Jetson Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Kumpulan Jetson Bhd's ROIC % falls into.
Kumpulan Jetson Bhd ROIC % Calculation
Kumpulan Jetson Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Jun. 2024) 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.
Kumpulan Jetson Bhd (XKLS:9083) 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, Kumpulan Jetson Bhd's WACC % is 2.19%. Kumpulan Jetson Bhd's ROIC % is -0.92% (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.
Kumpulan Jetson Bhd ROIC % Related Terms
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Kumpulan Jetson Bhd is an investment holding company. Its business segments are Construction and property development, Hostel management; and Manufacturing. The Construction and property development segment designs and builds turnkey contractors for civil construction works, general building works, interior works, renovation and restoration work, exhibition works, and memorial, museum, and gallery works. Its Hostel management segment provides hostel management service whereas; the Manufacturing segment includes the manufacturing and trading of rubber products, moulds and tools, adhesives, sealants, and silicone products. It derives key revenue from the Manufacturing segment. Geographically, the company derives a majority of its revenue from Malaysia.
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