Redmax Footwears (BOM:537524) ROC %: -32.25% (As of Mar. 2026)

What is Redmax Footwears ROC %?

Redmax Footwears BOM:537524 4 ROC % is -32.25% as of Mar. 2026. GuruFocus rates BOM:537524 with a GF Score™ of 4/100. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Redmax Footwears's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -32.25%.

As of today (2026-07-04), Redmax Footwears's WACC % is 6.55%. Redmax Footwears's ROC % is -45.29% (calculated using TTM income statement data). Redmax Footwears earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Redmax Footwears (BOM:537524) 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, Redmax Footwears's WACC % is 6.55%. Redmax Footwears's ROC % is -45.29% (calculated using TTM income statement data). Redmax Footwears 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.

Redmax Footwears ROC % Related Terms

Redmax Footwears ROC % Historical Data

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The historical data trend for Redmax Footwears'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.

Redmax Footwears ROC % Chart

Redmax Footwears Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar23

Mar24

Mar25

Mar26

ROC %

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-18.12

-2.32

-3.83

-35.49

-45.99

Redmax Footwears Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar23	Sep23	Dec23	Mar24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROC %	Get a 7-Day Free Trial															-126.87	-76.09	-50.09	-29.70	-32.25

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Redmax Footwears Ltd BOM:537524

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Redmax Footwears ROC % Calculation

Redmax Footwears's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2026 is calculated as:

	ROC % (A: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2025 )	+	Invested Capital (A: Mar. 2026 ))	/ count )
=	-1.664 * ( 1 - 0% )	/	( (2.97	+	4.267)	/ 2 )
=	-1.664	/	3.6185
=	-45.99 %

where

	Invested Capital		(A: Mar. 2025 )
=	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	))
=	1.446	-	0.736	-	( 1.295	-	max(0, 3.706	-	1.446	+	1.295	))
=	2.97

	Invested Capital		(A: Mar. 2026 )
=	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	))
=	0.28	-	0.02	-	( 0.019	-	max(0, 4.287	-	0.28	+	0.019	))
=	4.267

Redmax Footwears's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	-1.376 * ( 1 - 0% )	/	( (0	+	4.267)	/ 1 )
=	-1.376	/	4.267
=	-32.25 %

where

	Invested Capital		(Q: Dec. 2025 )
=	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: Mar. 2026 )
=	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	))
=	0.28	-	0.02	-	( 0.019	-	max(0, 4.287	-	0.28	+	0.019	))
=	4.267

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -32.25% mean?

Redmax Footwears (BOM:537524) has a ROC % of -32.25% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Redmax Footwears and its competitors.

Is Redmax Footwears' ROC % too high?

Redmax Footwears' current ROC % is -32.25%. Overall, Redmax Footwears has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.

How does Redmax Footwears' ROC % compare to AAPL and SONO?

Redmax Footwears' ROC % of -32.25% can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for a Diversified Financial Services company?

A good ROC % depends on the Diversified Financial Services industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Redmax Footwears and its competitors. Redmax Footwears's current ROC % is -32.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Redmax Footwears stock overvalued right now?

Redmax Footwears (BOM:537524) has a current ROC % of -32.25%. The current ROC % is -32.25%. Redmax Footwears' overall GF Score™ is 4/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For Redmax Footwears (BOM:537524), the current ROC % is -32.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Redmax Footwears Business Description

Industry Financial Services Diversified Financial Services

Comparable Companies BOM:543461 BOM:526009 BOM:500370 AAPL XKRX:005930 TSE:6758 HKSE:01810 TSE:6752 TSE:6971 SZSE:002241 XKRX:066570 XKRX:003550 SZSE:002056 TSE:6753 XKRX:034220 SZSE:300866 SZSE:000050 SHSE:688696 SONO BOM:540699

Address SVP Nagar, Janki Devi School Road, Saisha Bungalow Number - 10/87, Mhada, Versova, Andheri (West), Mumbai, MH, IND, 400053

Website https://www.v-ind.com

Redmax Footwears Ltd currently does not have any operations and is in the process of starting a new business.

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