Moxsh Overseas Educon (NSE:MOXSH) ROC % : 4.13% (As of Sep. 2023)

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What is Moxsh Overseas Educon 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 %. Moxsh Overseas Educon's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 4.13%.

As of today (2024-05-31), Moxsh Overseas Educon's WACC % is 13.02%. Moxsh Overseas Educon's ROC % is 9.63% (calculated using TTM income statement data). Moxsh Overseas Educon earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Moxsh Overseas Educon ROC % Historical Data

The historical data trend for Moxsh Overseas Educon'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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Moxsh Overseas Educon ROC % Chart

Moxsh Overseas Educon Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

ROC %

18.83

6.38

45.22

13.95

Moxsh Overseas Educon Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial			-	-	-30.05	16.20	4.13

Moxsh Overseas Educon ROC % Calculation

Moxsh Overseas Educon'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 )
=	15.619 * ( 1 - 26.84% )	/	( (36.705	+	127.139)	/ 2 )
=	11.4268604	/	81.922
=	13.95 %

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	))
=	48.715	-	17.811	-	( 1.644	-	max(0, 30.535	-	24.734	+	1.644	))
=	36.705

	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	))
=	159.249	-	8.046	-	( 24.064	-	max(0, 30.71	-	112.453	+	24.064	))
=	127.139

Moxsh Overseas Educon's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	7.754 * ( 1 - 27.65% )	/	( (127.139	+	144.478)	/ 2 )
=	5.610019	/	135.8085
=	4.13 %

where

	Invested Capital		(Q: 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	))
=	159.249	-	8.046	-	( 24.064	-	max(0, 30.71	-	112.453	+	24.064	))
=	127.139

	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	))
=	161.428	-	2.093	-	( 14.857	-	max(0, 31.226	-	119.209	+	14.857	))
=	144.478

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Moxsh Overseas Educon (NSE:MOXSH) 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, Moxsh Overseas Educon's WACC % is 13.02%. Moxsh Overseas Educon's ROC % is 9.63% (calculated using TTM income statement data). Moxsh Overseas Educon 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.

Moxsh Overseas Educon ROC % Related Terms

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Moxsh Overseas Educon (NSE:MOXSH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Moxsh Overseas Educon Ltd (NSE:MOXSH) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hasumal Tandel Marg, 159/160, Kaliandas Udhyog Bhavan, Century Bazar, Prabhadevi, Mumbai, MH, IND, 400025

Website

https://www.moksh16.com

Moxsh Overseas Educon Ltd is an Edu-Medi Tech company engaged in the business of offering diverse and cohesive learning solutions, counselling and mobility services to students aspiring to pursue medical studies (MBBS) in India or abroad under its brand MOKSH. It also provides advisory to students for their medical career planning and execution. The company is a digitally native, technology led business, providing online learning program (test preparation) for medical entrance examinations, NEET-UG and for medicos (i.e. medical aspirants or graduates of a medical school) to appear for medical licensing examination, such as USMLE, PLAB, DHA, NeXT, FMGE etc, under its brand MOKSH Academy.

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