KMF Builders & Developers (BOM:531578) ROC % : 367.42% (As of Dec. 2023)

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What is KMF Builders & Developers 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 %. KMF Builders & Developers's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 367.42%.

As of today (2024-05-26), KMF Builders & Developers's WACC % is 1.32%. KMF Builders & Developers's ROC % is 2.84% (calculated using TTM income statement data). KMF Builders & Developers generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

KMF Builders & Developers ROC % Historical Data

The historical data trend for KMF Builders & Developers'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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KMF Builders & Developers ROC % Chart

KMF Builders & Developers Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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1.50

0.58

2.28

1.47

0.88

KMF Builders & Developers Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															0.75	1.62	3.67	-353.57	367.42

KMF Builders & Developers ROC % Calculation

KMF Builders & Developers's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	2.16 * ( 1 - 34.08% )	/	( (148.876	+	174.017)	/ 2 )
=	1.423872	/	161.4465
=	0.88 %

where

	Invested Capital		(A: Mar. 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	))
=	207.919	-	1.695	-	( 57.348	-	max(0, 84.18	-	201.925	+	57.348	))
=	148.876

	Invested Capital		(A: Mar. 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	))
=	217.964	-	0.402	-	( 43.545	-	max(0, 91.717	-	214.279	+	43.545	))
=	174.017

KMF Builders & Developers'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	334.736 * ( 1 - 1.38% )	/	( (89.848	+	0)	/ 1 )
=	330.1166432	/	89.848
=	367.42 %

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	))
=	135.429	-	0.542	-	( 52.325	-	max(0, 86.947	-	131.986	+	52.325	))
=	89.848

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

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

KMF Builders & Developers (BOM:531578) 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, KMF Builders & Developers's WACC % is 1.32%. KMF Builders & Developers's ROC % is 2.84% (calculated using TTM income statement data). KMF Builders & Developers generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

KMF Builders & Developers ROC % Related Terms

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KMF Builders & Developers (BOM:531578) Business Description

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GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » KMF Builders & Developers Ltd (BOM:531578) » Definitions » ROC %

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Address

907, Rajendera Place, 9th Floor, Vikram Tower, New Delhi, IND, 110008

Website

https://www.kmfbuilders.com

KMF Builders & Developers Ltd is an India based company engaged in the development and construction of properties. The company constructs residences and buildings. Its projects include Golf manor residential apartments and Royal manor residential apartments. It has two segments: Real Estate Segment which comprises of development, sale, management and operation of all or any part of townships, housing projects, also includes leasing of self owned commercial premises; and Contracting and Manufacturing Segment which involves development of commercial premises and other related activities and also includes manufacturing activities related to interiors, glazing and metal works and concrete products. It generates revenue from the sale of flats.

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