CIE Automotive India (BOM:532756) ROC % : 10.50% (As of Sep. 2024)

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What is CIE Automotive India 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 %. CIE Automotive India's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 10.50%.

As of today (2024-12-13), CIE Automotive India's WACC % is 7.66%. CIE Automotive India's ROC % is 10.47% (calculated using TTM income statement data). CIE Automotive India generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

CIE Automotive India ROC % Historical Data

The historical data trend for CIE Automotive India'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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CIE Automotive India ROC % Chart

CIE Automotive India Annual Data

Trend

Mar14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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5.48

1.58

5.30

8.81

11.07

CIE Automotive India Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															9.26	10.63	11.15	11.66	10.50

CIE Automotive India ROC % Calculation

CIE Automotive India's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	11267.15 * ( 1 - 25.86% )	/	( (76422.59	+	74526.26)	/ 2 )
=	8353.46501	/	75474.425
=	11.07 %

where

	Invested Capital		(A: Dec. 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	))
=	99282.55	-	24814.25	-	( 6276.52	-	max(0, 41176.9	-	39222.61	+	6276.52	))
=	76422.59

	Invested Capital		(A: 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	))
=	97619.14	-	22649.06	-	( 9936.65	-	max(0, 31027.4	-	31471.22	+	9936.65	))
=	74526.26

CIE Automotive India's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	10030.28 * ( 1 - 25.1% )	/	( (71571.58	+	0)	/ 1 )
=	7512.67972	/	71571.58
=	10.50 %

where

	Invested Capital		(Q: Jun. 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	))
=	96829.46	-	20403.48	-	( 8403.36	-	max(0, 28979.47	-	33833.87	+	8403.36	))
=	71571.58

	Invested Capital		(Q: Sep. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

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

CIE Automotive India (BOM:532756) 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, CIE Automotive India's WACC % is 7.66%. CIE Automotive India's ROC % is 10.47% (calculated using TTM income statement data). CIE Automotive India generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

CIE Automotive India ROC % Related Terms

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CIE Automotive India Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » CIE Automotive India Ltd (BOM:532756) » Definitions » ROC %

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CIEINDIA:India

Address

Baner Road, Office No. 602 & 603, Amar Business Park, Opposite Sadanand Resort, Pune, MH, IND, 411045

Website

https://www.cie-india.com

CIE Automotive India Ltd is engaged in the business of production and sale of automotive components to original equipment manufacturers and other customers (including suppliers of components) in India and overseas. The company has manufacturing facilities in India, Germany, Spain, Lithuania, Italy, and Mexico. The company has an established presence in each of these locations and supplies automotive components to its customers based there and export products to customers based in other countries as well. Geographically the company operates in two segments India and Europe.

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