UR Sugar Industries (BOM:539097) ROC % : -78.13% (As of Mar. 2024)

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What is UR 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 %. UR Sugar Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -78.13%.

As of today (2024-06-05), UR Sugar Industries's WACC % is 13.26%. UR Sugar Industries's ROC % is -11.88% (calculated using TTM income statement data). UR Sugar Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

UR Sugar Industries ROC % Historical Data

The historical data trend for UR 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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UR Sugar Industries ROC % Chart

UR Sugar Industries Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-73.22

33.63

30.97

-3.62

-7.28

UR Sugar Industries Quarterly Data
	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-7.82	-3.66	-21.07	-11.92	-78.13

UR Sugar Industries ROC % Calculation

UR Sugar Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-8.103 * ( 1 - 30.61% )	/	( (136.258	+	18.146)	/ 2 )
=	-5.6226717	/	77.202
=	-7.28 %

where

	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	))
=	177.775	-	0.766	-	( 40.751	-	max(0, 1.027	-	175.487	+	40.751	))
=	136.258

	Invested Capital		(A: Mar. 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	))
=	188.231	-	6.045	-	( 167.372	-	max(0, 6.653	-	170.693	+	167.372	))
=	18.146

UR Sugar Industries's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-19.132 * ( 1 - 27.93% )	/	( (17.148	+	18.146)	/ 2 )
=	-13.7884324	/	17.647
=	-78.13 %

where

	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	))
=	186.361	-	2.879	-	( 166.334	-	max(0, 3.077	-	172.458	+	166.334	))
=	17.148

	Invested Capital		(Q: Mar. 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	))
=	188.231	-	6.045	-	( 167.372	-	max(0, 6.653	-	170.693	+	167.372	))
=	18.146

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

UR Sugar Industries (BOM:539097) 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, UR Sugar Industries's WACC % is 13.26%. UR Sugar Industries's ROC % is -11.88% (calculated using TTM income statement data). UR 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.

UR Sugar Industries ROC % Related Terms

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UR Sugar Industries (BOM:539097) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » UR Sugar Industries Ltd (BOM:539097) » Definitions » ROC %

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Address

UR Building, Basweshware Circle, Bellad-Bagewadi, Taluka Hukkeri, District Belgaum, Belgaum, KA, IND, 591305

Website

https://www.hkglimited.com

UR Sugar Industries Ltd formerly HKG Ltd connects small businesses and empowers them to grow through its web interfaces and services. Its services include My RERA, Area Online, My Notification, My Locker, and Mera Financial, among others. It is also engaged in the trading of securities. The business verticals of the group have a presence in industries like Retail, Hyperlocal, E-commerce, Real Estate, Digital Marketing, News and Information, Web Services, and others.

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