Shree Hanuman Sugar & Industries (BOM:537709) ROC % : -0.19% (As of Dec. 2023)

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What is Shree Hanuman Sugar & Industries 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 %. Shree Hanuman Sugar & Industries's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -0.19%.

As of today (2024-05-29), Shree Hanuman Sugar & Industries's WACC % is 1.44%. Shree Hanuman Sugar & Industries's ROC % is -0.28% (calculated using TTM income statement data). Shree Hanuman Sugar & Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shree Hanuman Sugar & Industries ROC % Historical Data

The historical data trend for Shree Hanuman Sugar & Industries'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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Shree Hanuman Sugar & Industries ROC % Chart

Shree Hanuman Sugar & Industries Annual Data

Trend

Jun14

Jun15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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-1.10

-0.31

-0.33

-10.12

-0.28

Shree Hanuman Sugar & Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-0.10	-0.83	-0.10	-0.01	-0.19

Shree Hanuman Sugar & Industries ROC % Calculation

Shree Hanuman Sugar & Industries'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 )
=	-8.711 * ( 1 - 0% )	/	( (3077.976	+	3077.965)	/ 2 )
=	-8.711	/	3077.9705
=	-0.28 %

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	))
=	2462.104	-	156.049	-	( 1.277	-	max(0, 854.807	-	82.886	+	1.277	))
=	3077.976

	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	))
=	2391.566	-	156.049	-	( 1.209	-	max(0, 857.404	-	14.956	+	1.209	))
=	3077.965

Shree Hanuman Sugar & Industries'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 )
=	-5.92 * ( 1 - 0% )	/	( (3136.225	+	0)	/ 1 )
=	-5.92	/	3136.225
=	-0.19 %

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	))
=	2391.495	-	98.58	-	( 1.22	-	max(0, 858.195	-	14.885	+	1.22	))
=	3136.225

	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.

Shree Hanuman Sugar & Industries (BOM:537709) 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, Shree Hanuman Sugar & Industries's WACC % is 1.44%. Shree Hanuman Sugar & Industries's ROC % is -0.28% (calculated using TTM income statement data). Shree Hanuman Sugar & Industries 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.

Shree Hanuman Sugar & Industries ROC % Related Terms

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Shree Hanuman Sugar & Industries (BOM:537709) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Shree Hanuman Sugar & Industries Ltd (BOM:537709) » Definitions » ROC %

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Traded in Other Exchanges

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Address

2/7 Sarat Bose Road, Premises No. 9 Ground Floor, Vasundhara Building, Kolkata, WB, IND, 700 020

Website

https://www.hanumansugar.com

Shree Hanuman Sugar & Industries Ltd is engaged in the manufacturing and sale of crystal white sugar. Also, it trades in-store items that are used by the sugar industry and trading construction rights. The company's sugar plant is located in the Indian state of Bihar. Its by-product molasses is sold to the distilleries and/or the ethanol units. The company operates in the segments of Sugar and Construction.

Shree Hanuman Sugar & Industries (BOM:537709) Headlines

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