Harish Textile Engineers (BOM:542682) ROC % : -1.00% (As of Sep. 2024)

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What is Harish Textile Engineers 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 %. Harish Textile Engineers's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -1.00%.

As of today (2025-03-27), Harish Textile Engineers's WACC % is 10.48%. Harish Textile Engineers's ROC % is 5.48% (calculated using TTM income statement data). Harish Textile Engineers earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Harish Textile Engineers ROC % Historical Data

The historical data trend for Harish Textile Engineers'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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Harish Textile Engineers ROC % Chart

Harish Textile Engineers Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-4.80

4.35

6.80

-2.25

7.79

Harish Textile Engineers Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															10.25	0.72	10.30	2.75	-1.00

Harish Textile Engineers ROC % Calculation

Harish Textile Engineers'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 )
=	66.41 * ( 1 - 21.14% )	/	( (640.971	+	704.239)	/ 2 )
=	52.370926	/	672.605
=	7.79 %

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	))
=	771.261	-	217.2	-	( 0.575	-	max(0, 544.131	-	457.221	+	0.575	))
=	640.971

	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	))
=	776.131	-	223.151	-	( 2.191	-	max(0, 611.656	-	460.397	+	2.191	))
=	704.239

Harish Textile Engineers'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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-10.944 * ( 1 - 28.61% )	/	( (0	+	778.735)	/ 1 )
=	-7.8129216	/	778.735
=	-1.00 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	783.823	-	219.445	-	( 5.712	-	max(0, 670.182	-	455.825	+	5.712	))
=	778.735

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

Harish Textile Engineers (BOM:542682) 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, Harish Textile Engineers's WACC % is 10.48%. Harish Textile Engineers's ROC % is 5.48% (calculated using TTM income statement data). Harish Textile Engineers 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.

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Harish Textile Engineers Business Description

Industry

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Address

19, Parsi Panchayat Road, 2nd Floor, Andheri (East), Mumbai, MH, IND, 400069

Website

http://www.harishtextile.com

Harish Textile Engineers Ltd is engaged in the manufacturing of textile processing and finishing machinery, the production of non-woven fabrics, and the production of polyester staple fiber. Its segments include Textile Engineering, Non-Woven and PSF. It offers products such as Stenter, Rotary Printing, Jigger, Dyeing Padder, Coater, Scouring, Curing, Relax Dryer, fabrics for automotive interiors, shoe liners, and various other products. The company generates key revenue from the Non-Woven segment.

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