Alchemist (BOM:526707) ROC % : -255.42% (As of Sep. 2020)

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What is Alchemist 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 %. Alchemist's annualized return on capital (ROC %) for the quarter that ended in Sep. 2020 was -255.42%.

As of today (2024-06-03), Alchemist's WACC % is 0.00%. Alchemist's ROC % is 0.00% (calculated using TTM income statement data). Alchemist earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Alchemist ROC % Historical Data

The historical data trend for Alchemist'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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Alchemist ROC % Chart

Alchemist Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

ROC %

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-7.12

-3.93

-2.56

-7.44

-7.52

Alchemist Quarterly Data
	Dec11	Mar12	Jun12	Dec12	Mar13	Jun13	Mar14	Mar15	Mar16	Mar17	Mar18	Jun18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
ROC %	Get a 7-Day Free Trial															-	-	-28.19	-0.97	-255.42

Alchemist ROC % Calculation

Alchemist's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2020 is calculated as:

	ROC % (A: Mar. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2019 )	+	Invested Capital (A: Mar. 2020 ))	/ count )
=	-577.244 * ( 1 - 19.41% )	/	( (6394.257	+	5976.706)	/ 2 )
=	-465.2009396	/	6185.4815
=	-7.52 %

where

	Invested Capital		(A: Mar. 2019 )
=	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	))
=	7741.545	-	1326.032	-	( 21.256	-	max(0, 1643.359	-	4377.916	+	21.256	))
=	6394.257

	Invested Capital		(A: Mar. 2020 )
=	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	))
=	7325.48	-	1326.408	-	( 22.366	-	max(0, 1611.84	-	3914.165	+	22.366	))
=	5976.706

Alchemist's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2020 is calculated as:

	ROC % (Q: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Sep. 2020 ))	/ count )
=	-14945.936 * ( 1 - 25.74% )	/	( (0	+	4345.4)	/ 1 )
=	-11098.8520736	/	4345.4
=	-255.42 %

where

	Invested Capital		(Q: Jun. 2020 )
=	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

	Invested Capital		(Q: Sep. 2020 )
=	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	))
=	4218.418	-	83.208	-	( 27.723	-	max(0, 406.626	-	196.436	+	27.723	))
=	4345.4

Note: The Operating Income data used here is four times the quarterly (Sep. 2020) data.

Alchemist (BOM:526707) 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, Alchemist's WACC % is 0.00%. Alchemist's ROC % is 0.00% (calculated using TTM income statement data). Alchemist 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.

Alchemist ROC % Related Terms

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Alchemist (BOM:526707) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alchemist Ltd (BOM:526707) » Definitions » ROC %

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Address

Alchemist House, Building No.23, Nehru Place, New Delhi, IND, 110019

Website

http://www.alchemist.co.in

Alchemist Ltd is a diversified Conglomerate company. It is engaged in the business of Agriculture and allied activities comprising of floriculture and manufacturing of wire mesh for poultry industry and trading of chemicals and pharmaceutical formulations. It operates through two segments: Agri Business and Pharma, Chemical and Minerals. The company's operations are spread across North America, Europe, Asia Pacific and Rest of the World regions.

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