Siddharth Education Services (BOM:540736) ROC % : -0.51% (As of Mar. 2020)

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What is Siddharth Education Services 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 %. Siddharth Education Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2020 was -0.51%.

As of today (2024-06-05), Siddharth Education Services's WACC % is 0.00%. Siddharth Education Services's ROC % is 0.00% (calculated using TTM income statement data). Siddharth Education Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Siddharth Education Services ROC % Historical Data

The historical data trend for Siddharth Education Services'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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Siddharth Education Services ROC % Chart

Siddharth Education Services Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

ROC %

8.41

12.32

21.95

11.26

-0.51

Siddharth Education Services Semi-Annual Data
	Mar16	Mar17	Mar18	Mar19	Mar20
ROC %	8.41	12.32	21.95	11.26	-0.51

Siddharth Education Services ROC % Calculation

Siddharth Education Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2020 is calculated as:

	ROC % (A: Mar. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2019 )	+	Invested Capital (A: Mar. 2020 ))	/ count )
=	-2.023 * ( 1 - 9.29% )	/	( (403.386	+	320.143)	/ 2 )
=	-1.8350633	/	361.7645
=	-0.51 %

where

	Invested Capital		(A: Mar. 2019 )
=	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	))
=	494.303	-	98.72	-	( 21.561	-	max(0, 157.06	-	149.257	+	21.561	))
=	403.386

	Invested Capital		(A: Mar. 2020 )
=	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	))
=	352.537	-	14.773	-	( 35.965	-	max(0, 48.572	-	66.193	+	35.965	))
=	320.143

Siddharth Education Services's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2020 is calculated as:

	ROC % (Q: Mar. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2019 )	+	Invested Capital (Q: Mar. 2020 ))	/ count )
=	-2.023 * ( 1 - 9.29% )	/	( (403.386	+	320.143)	/ 2 )
=	-1.8350633	/	361.7645
=	-0.51 %

where

	Invested Capital		(Q: Mar. 2019 )
=	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	))
=	494.303	-	98.72	-	( 21.561	-	max(0, 157.06	-	149.257	+	21.561	))
=	403.386

	Invested Capital		(Q: Mar. 2020 )
=	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	))
=	352.537	-	14.773	-	( 35.965	-	max(0, 48.572	-	66.193	+	35.965	))
=	320.143

Note: The Operating Income data used here is one times the annual (Mar. 2020) data.

Siddharth Education Services (BOM:540736) 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, Siddharth Education Services's WACC % is 0.00%. Siddharth Education Services's ROC % is 0.00% (calculated using TTM income statement data). Siddharth Education Services 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.

Siddharth Education Services ROC % Related Terms

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Siddharth Education Services (BOM:540736) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Siddharth Education Services Ltd (BOM:540736) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

101, First Floor, Chirag Arcade, E. R. ROAD, Behind Nagrik Stores, Near Ashok Cinema, Thane, MH, IND, 400 601

Website

http://www.siddharthacademy.in

Siddharth Education Services Ltd is engaged in providing tutorial coaching services for students of professional courses. The company offers tutorial services to C.S., C.A., and C.M.A under the brand name of Siddharth Academy. It is also engaged in the farming business. The company generates its revenue from Education Fees, Farming Activities, and Online Education Service.

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