United Van Der Horst (BOM:522091) ROC % : 6.98% (As of Dec. 2023)

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What is United Van Der Horst 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 %. United Van Der Horst's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.98%.

As of today (2024-05-26), United Van Der Horst's WACC % is 11.49%. United Van Der Horst's ROC % is 5.06% (calculated using TTM income statement data). United Van Der Horst earns returns that do not match up to its cost of capital. It will destroy value as it grows.

United Van Der Horst ROC % Historical Data

The historical data trend for United Van Der Horst'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.

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United Van Der Horst ROC % Chart

United Van Der Horst Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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-2.80

306.82

1.31

6.14

5.39

United Van Der Horst Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															7.23	3.31	8.08	4.08	6.98

United Van Der Horst ROC % Calculation

United Van Der Horst'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 )
=	46.099 * ( 1 - 23.99% )	/	( (583.583	+	715.65)	/ 2 )
=	35.0398499	/	649.6165
=	5.39 %

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	))
=	604.944	-	6.548	-	( 14.813	-	max(0, 22.259	-	101.358	+	14.813	))
=	583.583

	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	))
=	734.445	-	12.731	-	( 6.064	-	max(0, 56.054	-	132.293	+	6.064	))
=	715.65

United Van Der Horst'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 )
=	69.628 * ( 1 - 21.67% )	/	( (781.479	+	0)	/ 1 )
=	54.5396124	/	781.479
=	6.98 %

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	))
=	819.251	-	37.221	-	( 0.551	-	max(0, 94.185	-	161.904	+	0.551	))
=	781.479

	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.

United Van Der Horst (BOM:522091) 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, United Van Der Horst's WACC % is 11.49%. United Van Der Horst's ROC % is 5.06% (calculated using TTM income statement data). United Van Der Horst 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.

United Van Der Horst ROC % Related Terms

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United Van Der Horst (BOM:522091) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » United Van Der Horst Ltd (BOM:522091) » Definitions » ROC %

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Address

E-29/30 MIDC Industrial Area, Taloja, Raigad District, Navi Mumbai, MH, IND, 410208

Website

http://www.uvdhl.com

United Van Der Horst Ltd is a company engaged in providing reconditioning, re-standardizing, reverse engineering, and manufacturing services to the sectors such as marine, oil field, power plants, petrochemicals, and mining. The business segments of the group are Manufacturing and reconditioning; and Others, of which maximum revenue is derived from the Job work and reconditioning segment, which relates to job work of hydraulic cylinders. The group's process includes grinding, honing, chrome plating, boring, vertical turret lathe, and groove grinding. It offers products like hydraulic cylinders, pneumatic cylinders, hydraulic seals, pneumatic seals, telescopic cylinders, a coil buggy cylinder, rock breaker cylinder, jacking cylinder, and others.

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