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Parvati Sweetners and Power (BOM:541347) ROC % : -0.83% (As of Jun. 2024)


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What is Parvati Sweetners and Power 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 %. Parvati Sweetners and Power's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -0.83%.

As of today (2024-10-31), Parvati Sweetners and Power's WACC % is 9.15%. Parvati Sweetners and Power's ROC % is 1.74% (calculated using TTM income statement data). Parvati Sweetners and Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Parvati Sweetners and Power ROC % Historical Data

The historical data trend for Parvati Sweetners and Power'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.

Parvati Sweetners and Power ROC % Chart

Parvati Sweetners and Power Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only 1.30 2.70 -20.42 3.32 1.90

Parvati Sweetners and Power Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.27 6.38 3.24 2.66 -0.83

Parvati Sweetners and Power ROC % Calculation

Parvati Sweetners and Power's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=63.543 * ( 1 - 52.4% )/( (1572.369 + 1604.398)/ 2 )
=30.246468/1588.3835
=1.90 %

where

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))
=1643.107 - 66.673 - ( 4.065 - max(0, 459.667 - 853.052+4.065))
=1572.369

Invested Capital(A: Mar. 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))
=1686.801 - 69.216 - ( 13.187 - max(0, 491.647 - 936.966+13.187))
=1604.398

Parvati Sweetners and Power's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=31.912 * ( 1 - 141.98% )/( (1604.398 + 0)/ 1 )
=-13.3966576/1604.398
=-0.83 %

where

Invested Capital(Q: Mar. 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))
=1686.801 - 69.216 - ( 13.187 - max(0, 491.647 - 936.966+13.187))
=1604.398

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.


Parvati Sweetners and Power  (BOM:541347) 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, Parvati Sweetners and Power's WACC % is 9.15%. Parvati Sweetners and Power's ROC % is 1.74% (calculated using TTM income statement data). Parvati Sweetners and Power 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.


Parvati Sweetners and Power ROC % Related Terms

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Parvati Sweetners and Power Business Description

Traded in Other Exchanges
N/A
Address
Jawahar Chowk, Hall No. 2, Gomantika Parisar, Shopping Complex, Bhopal, MP, IND, 462003
Parvati Sweetners and Power Ltd is engaged in the manufacturing, processing, refining, selling, and trading of crystal sugar, refined sugar, sugar cubes, liquid sugar, and raw sugar including sugar candy, confectionery, pharmaceutical sugar, syrups, food products and by-products such as biogases, molasses, ethanol, and others. The company generates its income from the sale of sugar and its by-products.

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