Karuturi Global (BOM:531687) ROC % : 1.51% (As of Dec. 2018)

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What is Karuturi Global 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 %. Karuturi Global's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was 1.51%.

As of today (2024-05-24), Karuturi Global's WACC % is 0.00%. Karuturi Global's ROC % is 0.00% (calculated using TTM income statement data). Karuturi Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Karuturi Global ROC % Historical Data

The historical data trend for Karuturi 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.

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Karuturi Global ROC % Chart

Karuturi Global Annual Data

Trend

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

ROC %

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4.04

1.91

1.79

3.16

1.50

Karuturi Global Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC %	Get a 7-Day Free Trial															1.12	3.92	0.38	0.12	1.51

Karuturi Global ROC % Calculation

Karuturi Global's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2018 is calculated as:

	ROC % (A: Mar. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2017 )	+	Invested Capital (A: Mar. 2018 ))	/ count )
=	442.492 * ( 1 - -0.3% )	/	( (29515.396	+	29687.7)	/ 2 )
=	443.819476	/	29601.548
=	1.50 %

where

	Invested Capital		(A: Mar. 2017 )
=	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	))
=	28325.14	-	2180.53	-	( 181.931	-	max(0, 6165.964	-	2795.178	+	181.931	))
=	29515.396

	Invested Capital		(A: Mar. 2018 )
=	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	))
=	29377.321	-	1901.537	-	( 185.579	-	max(0, 6459.816	-	4247.9	+	185.579	))
=	29687.7

Karuturi Global's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	501.128 * ( 1 - -0.28% )	/	( (33182.012	+	0)	/ 1 )
=	502.5311584	/	33182.012
=	1.51 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	31837.914	-	1326.866	-	( 371.757	-	max(0, 6844.813	-	4173.849	+	371.757	))
=	33182.012

	Invested Capital		(Q: Dec. 2018 )
=	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. 2018) data.

Karuturi Global (BOM:531687) 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, Karuturi Global's WACC % is 0.00%. Karuturi Global's ROC % is 0.00% (calculated using TTM income statement data). Karuturi 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.

Karuturi Global ROC % Related Terms

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Karuturi Global (BOM:531687) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Karuturi Global Ltd (BOM:531687) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

11, Crescent Road, Number 204, Embassy Center, Bangalore, KA, IND, 560001

Website

http://www.karuturi.com

Karuturi Global Ltd is engaged in the manufacturing of flowers, plant and plant materials. The company is a producer and exporter of cut roses and has its operations in India, Ethiopia, Dubai, and Kenya. It is involved in the business of Floriculture, Agriculture, Food processing and Information technology (IT). The Floriculture products consist of cut flowers, pot plants, seeds bulbs, rooted cuttings and dried flowers. Its Agriculture business produces cereal crops like maize, corn, sugarcane, and oilseeds. The Food processing business specializes in gherkin processing such as bay valley foods, mount olive, vlassic, heinz, and lidl. The IT business offers customized e-commerce solutions to companies dealing with perishable goods and commodities, paper industries, and government agencies.

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