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Aarvee Denims & Exports (BOM:514274) ROC % : -10.26% (As of Jun. 2024)


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What is Aarvee Denims & Exports 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 %. Aarvee Denims & Exports's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -10.26%.

As of today (2024-10-31), Aarvee Denims & Exports's WACC % is 9.65%. Aarvee Denims & Exports's ROC % is -1.56% (calculated using TTM income statement data). Aarvee Denims & Exports earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Aarvee Denims & Exports ROC % Historical Data

The historical data trend for Aarvee Denims & Exports'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.

Aarvee Denims & Exports ROC % Chart

Aarvee Denims & Exports Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.18 -5.59 -5.15 -6.91 -5.53

Aarvee Denims & Exports Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.84 -6.41 -4.77 -1.76 -10.26

Aarvee Denims & Exports ROC % Calculation

Aarvee Denims & Exports's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-397.14 * ( 1 - 38.85% )/( (4957.057 + 3824.056)/ 2 )
=-242.85111/4390.5565
=-5.53 %

where

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))
=5278.303 - 615.391 - ( 1.599 - max(0, 2985.973 - 2691.828+1.599))
=4957.057

Invested Capital(A: Mar. 2024 )
=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))
=4384.877 - 558.607 - ( 2.214 - max(0, 2759.53 - 2828.08+2.214))
=3824.056

Aarvee Denims & Exports's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-481.504 * ( 1 - 18.55% )/( (3824.056 + 0)/ 1 )
=-392.185008/3824.056
=-10.26 %

where

Invested Capital(Q: Mar. 2024 )
=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))
=4384.877 - 558.607 - ( 2.214 - max(0, 2759.53 - 2828.08+2.214))
=3824.056

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) 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.


Aarvee Denims & Exports  (BOM:514274) 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, Aarvee Denims & Exports's WACC % is 9.65%. Aarvee Denims & Exports's ROC % is -1.56% (calculated using TTM income statement data). Aarvee Denims & Exports 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.


Aarvee Denims & Exports ROC % Related Terms

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Aarvee Denims & Exports Business Description

Traded in Other Exchanges
Address
Moje Shahwadi, Narol - Sarkej Highway, No. 191, Near Old Octroi Naka, Ahmedabad, GJ, IND, 382 405
Aarvee Denims & Exports Ltd is engaged in the manufacturing and selling of denim and non-denim fabrics and garments. The company has identified two reportable business segments that are Textile and Windmill; out of which the Textile segment generates the maximum revenue for the company. Geographically, the company derives a majority of its revenue from India.

Aarvee Denims & Exports Headlines

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