ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Azure Power Global's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.36%.
As of today (2026-07-03), Azure Power Global's WACC % is 0.00%. Azure Power Global's ROC % is 0.00% (calculated using TTM income statement data).
Azure Power Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Azure Power Global (OTCPK:AZREF) 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, Azure Power Global's WACC % is 0.00%. Azure Power Global's ROC % is 0.00% (calculated using TTM income statement data).
Azure Power Global 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.
Azure Power Global ROC % Related Terms
Azure Power Global ROC % Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
Note:
The Operating Income data used here is one times the annual (Mar. 2024) data.
The tax rate is limited to between 0% and 100%.
* 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.
Azure Power Global (AZREF) has a ROC % of 4.36% as of Mar. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Azure Power Global and its competitors.
Is Azure Power Global's ROC % too high?
Azure Power Global's current ROC % is 4.36%. The Utilities - Independent Power Producers industry median ROC % is 2.29. Azure Power Global's value of 4.36% is 90.4% above this industry median. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's ROC % compare to SAFX and VGAS?
Azure Power Global's ROC % of 4.36% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median ROC % is 2.29. Azure Power Global's value of 4.36% is 90.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Utilities - Independent Power Producers company?
The median ROC % among Utilities - Independent Power Producers companies is 2.29, based on 429 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Azure Power Global's current ROC % of 4.36% is 90.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Azure Power Global and its competitors. For the Utilities - Independent Power Producers industry, the median ROC % is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current ROC % is 4.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current ROC % of 4.36%. The current ROC % is 4.36% and 90.4% above the Utilities - Independent Power Producers industry median of 2.29. Azure Power Global's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Azure Power Global (AZREF), the current ROC % is 4.36% as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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