Captain Technocast (BOM:540652) ROC % : 17.07% (As of Sep. 2024)

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What is Captain Technocast 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 %. Captain Technocast's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 17.07%.

As of today (2024-12-14), Captain Technocast's WACC % is -7.62%. Captain Technocast's ROC % is 15.87% (calculated using TTM income statement data). Captain Technocast 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.

Captain Technocast ROC % Historical Data

The historical data trend for Captain Technocast'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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Captain Technocast ROC % Chart

Captain Technocast Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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8.74

9.19

10.77

12.57

13.09

Captain Technocast Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															8.35	15.60	10.08	14.98	17.07

Captain Technocast ROC % Calculation

Captain Technocast'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 )
=	56.859 * ( 1 - 23.97% )	/	( (313.447	+	347.263)	/ 2 )
=	43.2298977	/	330.355
=	13.09 %

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	))
=	443.819	-	122.54	-	( 7.832	-	max(0, 225.073	-	314.443	+	7.832	))
=	313.447

	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	))
=	438.788	-	88.422	-	( 3.103	-	max(0, 182.934	-	272.919	+	3.103	))
=	347.263

Captain Technocast'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: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	82.664 * ( 1 - 23.04% )	/	( (347.263	+	398.276)	/ 2 )
=	63.6182144	/	372.7695
=	17.07 %

where

	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	))
=	438.788	-	88.422	-	( 3.103	-	max(0, 182.934	-	272.919	+	3.103	))
=	347.263

	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	))
=	513.926	-	113.856	-	( 1.794	-	max(0, 203.676	-	312.263	+	1.794	))
=	398.276

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

Captain Technocast (BOM:540652) 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, Captain Technocast's WACC % is -7.62%. Captain Technocast's ROC % is 15.87% (calculated using TTM income statement data). Captain Technocast 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.

Captain Technocast ROC % Related Terms

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Captain Technocast Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Captain Technocast Ltd (BOM:540652) » Definitions » ROC %

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Address

National Highway Number 8-B, Plot Number 4, Survey Number 257, Shapar - Veraval, Rajkot, GJ, IND, 360024

Website

https://www.captaintechnocast.com

Captain Technocast Ltd is engaged in the business of manufacturing metal casting products for various industries. The company's products include Industrial Valves Casting, Industrial Pumps Casting, Fire Fighting Equipments Casting, Engineering & Automobile Casting, Structural and Hardware, Dairy Equipment Casting, Power Plant and Boiler parts Casting, Aerospace Casting and Defence Casting. It operates in one segment which is manufacturing and selling of lnvestment Casting. Geographically, it operates only in India.

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