ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Golden Tobacco's annualized return on capital (ROC %) for the quarter that ended in Dec. 2021 was -0.46%.
As of today (2026-07-03), Golden Tobacco's WACC % is 0.00%. Golden Tobacco's ROC % is 0.00% (calculated using TTM income statement data).
Golden Tobacco earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Golden Tobacco (BOM:500151) 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, Golden Tobacco's WACC % is 0.00%. Golden Tobacco's ROC % is 0.00% (calculated using TTM income statement data).
Golden Tobacco 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.
Golden Tobacco ROC % Related Terms
Golden Tobacco ROC % Historical Data
* Premium members only.
The historical data trend for Golden Tobacco'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 four times the quarterly (Dec. 2021) 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.
Golden Tobacco (BOM:500151) has a ROC % of -0.46% as of Dec. 2021. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Golden Tobacco and its competitors.
Is Golden Tobacco's ROC % too high?
Golden Tobacco's current ROC % is -0.46%. Overall, Golden Tobacco has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Golden Tobacco's ROC % compare to PM and MO?
Golden Tobacco's ROC % of -0.46% can be compared against companies in the Tobacco Products industry. The industry median ROC % is 8.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Tobacco Products company?
The median ROC % among Tobacco Products companies is 8.99, based on 48 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. 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 Golden Tobacco and its competitors. For the Tobacco Products industry, the median ROC % is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Golden Tobacco's current ROC % is -0.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Golden Tobacco stock overvalued right now?
Golden Tobacco (BOM:500151) has a current ROC % of -0.46%. The current ROC % is -0.46%. Golden Tobacco's overall GF Score™ is 4/100. 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 Golden Tobacco (BOM:500151), the current ROC % is -0.46% as of Dec. 2021. 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.
Golden Tobacco Ltd is an Indian based firm engaged in the business of Tobacco. The company is primarily involved in the manufacturing of cigarettes and cigars. Its operating segment includes Tobacco Products and Realty. The company generates maximum revenue from Realty segment. It sells cigarettes and cigars under various brands such as Panama, Chancellor, Golden's, and Steel.
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