Adani Wilmar (NSE:AWL) ROC % : 7.05% (As of Dec. 2023)

View and export this data going back to 2022. Start your Free Trial

What is Adani Wilmar 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 %. Adani Wilmar's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 7.05%.

As of today (2024-04-26), Adani Wilmar's WACC % is 12.84%. Adani Wilmar's ROC % is 7.38% (calculated using TTM income statement data). Adani Wilmar earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Adani Wilmar ROC % Historical Data

The historical data trend for Adani Wilmar'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.

Adani Wilmar ROC % Chart

Adani Wilmar Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

13.10

15.06

13.75

13.43

11.02

Adani Wilmar Quarterly Data
	Mar19	Mar20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial										12.91	26.91	1.32	1.34	7.05

Adani Wilmar ROC % Calculation

Adani Wilmar'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 )
=	14982.2 * ( 1 - 29.83% )	/	( (92374.1	+	98483.7)	/ 2 )
=	10513.00974	/	95428.9
=	11.02 %

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	))
=	213172.7	-	94849.2	-	( 25949.4	-	max(0, 126912	-	153821.4	+	25949.4	))
=	92374.1

	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	))
=	209797.8	-	87490.9	-	( 23823.2	-	max(0, 116871.2	-	145318.7	+	23823.2	))
=	98483.7

Adani Wilmar'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 )
=	11050.4 * ( 1 - 26.67% )	/	( (114889.8	+	0)	/ 1 )
=	8103.25832	/	114889.8
=	7.05 %

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	))
=	205311.9	-	68991.2	-	( 36813.9	-	max(0, 114650.1	-	136081	+	36813.9	))
=	114889.8

	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.

Adani Wilmar (NSE:AWL) 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, Adani Wilmar's WACC % is 12.84%. Adani Wilmar's ROC % is 7.38% (calculated using TTM income statement data). Adani Wilmar 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.

Adani Wilmar ROC % Related Terms

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

Adani Wilmar (NSE:AWL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Adani Wilmar Ltd (NSE:AWL) » Definitions » ROC %

Traded in Other Exchanges

543458:India

Address

Near Navrangpura Railway Crossing, Fortune House, Ahmedabad, GJ, IND, 380 009

Website

https://www.adaniwilmar.com

Adani Wilmar Ltd is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives, and de-oiled cakes. The company's products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups. The company sells its entire range of packed products under the following brands: Fortune, King's, Raag, Bullet, Fryola, Jubilee, Aadhaar, and VIVO.

Adani Wilmar (NSE:AWL) Headlines

No Headlines