Rain Industries (BOM:500339) ROC % : 0.12% (As of Dec. 2023)

View and export this data going back to 2000. Start your Free Trial

What is Rain Industries 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 %. Rain Industries's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.12%.

As of today (2024-06-08), Rain Industries's WACC % is 11.01%. Rain Industries's ROC % is 0.11% (calculated using TTM income statement data). Rain Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rain Industries ROC % Historical Data

The historical data trend for Rain Industries'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.

* Premium members only.

Rain Industries ROC % Chart

Rain Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

4.81

4.42

5.44

11.34

8.59

Rain Industries Semi-Annual Data
	Mar05	Mar06	Mar07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	Get a 7-Day Free Trial														1.80	0.94	-0.59	0.94	0.12

Rain Industries ROC % Calculation

Rain Industries'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 )
=	9027.33 * ( 1 - -65.05% )	/	( (186477.591	+	160287.79)	/ 2 )
=	14899.608165	/	173382.6905
=	8.59 %

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	))
=	221734.09	-	20427.36	-	( 14829.139	-	max(0, 39183.56	-	92482.279	+	14829.139	))
=	186477.591

	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	))
=	200088.94	-	17976.59	-	( 21824.56	-	max(0, 32419.78	-	79087.9	+	21824.56	))
=	160287.79

Rain Industries's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	173.46 * ( 1 - -10.16% )	/	( (186477.591	+	160287.79)	/ 2 )
=	191.083536	/	173382.6905
=	0.11 %

where

	Invested Capital		(Q: 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	))
=	221734.09	-	20427.36	-	( 14829.139	-	max(0, 39183.56	-	92482.279	+	14829.139	))
=	186477.591

	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	))
=	200088.94	-	17976.59	-	( 21824.56	-	max(0, 32419.78	-	79087.9	+	21824.56	))
=	160287.79

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

Rain Industries (BOM:500339) 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, Rain Industries's WACC % is 11.01%. Rain Industries's ROC % is 0.11% (calculated using TTM income statement data). Rain Industries 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.

Rain Industries ROC % Related Terms

Thank you for viewing the detailed overview of Rain Industries's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Rain Industries (BOM:500339) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Rain Industries Ltd (BOM:500339) » Definitions » ROC %

Traded in Other Exchanges

RAIN:India

Address

34, Srinagar Colony, Rain Center, Hyderabad, TG, IND, 500073

Website

https://www.rain-industries.com

Rain Industries Ltd engages in the production of cement and other related products. The group operates through three segments namely Carbon Products, Advanced Materials, and Cement. The product portfolio of the group consists of Calcined Petroleum Coke, Green Petroleum Coke, Coal Tar Pitch, Co-generated Energy and other derivatives of coal tar distillation. In addition, it also focuses on the downstream operations of coal tar distillation and modifiers and is also involved in the manufacture and sale of cement. Geographically, the business of the firm is spread across the region of Europe, the United States, North America, Asia, and others.

Rain Industries (BOM:500339) Headlines

No Headlines