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Aeries Technology (Aeries Technology) ROC % : 4.83% (As of Dec. 2023)


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What is Aeries Technology 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 %. Aeries Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 4.83%.

As of today (2024-05-26), Aeries Technology's WACC % is 11.86%. Aeries Technology's ROC % is 1.84% (calculated using TTM income statement data). Aeries Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aeries Technology ROC % Historical Data

The historical data trend for Aeries Technology'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.

Aeries Technology ROC % Chart

Aeries Technology Annual Data
Trend Mar22 Mar23
ROC %
33.06 6.70

Aeries Technology Quarterly Data
Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % Get a 7-Day Free Trial - 14.51 6.86 -21.43 4.83

Aeries Technology ROC % Calculation

Aeries Technology'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 )
=2.331 * ( 1 - 38.32% )/( (15.707 + 27.216)/ 2 )
=1.4377608/21.4615
=6.70 %

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))
=18.862 - 2.804 - ( 0.351 - max(0, 6.613 - 11.929+0.351))
=15.707

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))
=34.397 - 6.05 - ( 1.131 - max(0, 12.522 - 20.585+1.131))
=27.216

Aeries Technology'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 )
=2.932 * ( 1 - -3.54% )/( (50.55 + 75.059)/ 2 )
=3.0357928/62.8045
=4.83 %

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))
=50.042 - 8.829 - ( 0.008 - max(0, 9.386 - 0.049+0.008))
=50.55

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))
=46.709 - 7.771 - ( 6.543 - max(0, 68.118 - 31.997+6.543))
=75.059

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

Aeries Technology  (NAS:AERTW) 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, Aeries Technology's WACC % is 11.86%. Aeries Technology's ROC % is 1.84% (calculated using TTM income statement data). Aeries Technology 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.

Aeries Technology ROC % Related Terms

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Aeries Technology (Aeries Technology) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Aeries Technology Inc (NAS:AERTW) » Definitions » ROC %
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Traded in Other Exchanges
AERT:USA
Address
Twin Towers Lane, Paville House, 5th Floor, Prabhadevi, Mumbai, MH, IND, 400025
Website
https://www.aeriestechnology.com
Aeries Technology Inc is a global professional and management services partner offering a range of management consultancy services for private equity sponsors and their portfolio companies with engagement models that are designed to provide a mix of deep vertical specialty, functional expertise, and digital systems and solutions to scale, optimize and transform a client's business operations. It supports and drives its client's global growth by providing a range of management consultancy services involving professional advisory services and operations management services to build and manage dedicated delivery centers in appropriate locations based on customer business needs.