Novateor Research Laboratories (BOM:542771) ROC % : -2.40% (As of Sep. 2024)

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What is Novateor Research Laboratories 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 %. Novateor Research Laboratories's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -2.40%.

As of today (2025-04-05), Novateor Research Laboratories's WACC % is 2.81%. Novateor Research Laboratories's ROC % is -2.17% (calculated using TTM income statement data). Novateor Research Laboratories earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Novateor Research Laboratories ROC % Historical Data

The historical data trend for Novateor Research Laboratories'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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Novateor Research Laboratories ROC % Chart

Novateor Research Laboratories Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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1.14

-3.74

-3.02

-4.59

-2.57

Novateor Research Laboratories Semi-Annual Data
	Mar17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial										-6.02	-3.67	-5.08	-1.92	-2.40

Novateor Research Laboratories ROC % Calculation

Novateor Research Laboratories'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 )
=	-3.729 * ( 1 - 36.72% )	/	( (85.682	+	98.249)	/ 2 )
=	-2.3597112	/	91.9655
=	-2.57 %

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	))
=	89.51	-	1.633	-	( 2.195	-	max(0, 7.308	-	64.903	+	2.195	))
=	85.682

	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	))
=	104.589	-	5.445	-	( 0.895	-	max(0, 11.963	-	75.175	+	0.895	))
=	98.249

Novateor Research Laboratories'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 )
=	-3.356 * ( 1 - 26.55% )	/	( (98.249	+	107.165)	/ 2 )
=	-2.464982	/	102.707
=	-2.40 %

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	))
=	104.589	-	5.445	-	( 0.895	-	max(0, 11.963	-	75.175	+	0.895	))
=	98.249

	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	))
=	111.343	-	3.577	-	( 0.601	-	max(0, 9.434	-	80.115	+	0.601	))
=	107.165

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

Novateor Research Laboratories (BOM:542771) 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, Novateor Research Laboratories's WACC % is 2.81%. Novateor Research Laboratories's ROC % is -2.17% (calculated using TTM income statement data). Novateor Research Laboratories 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.

Novateor Research Laboratories ROC % Related Terms

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Novateor Research Laboratories Business Description

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Address

Anandnagar Cross Road, 100 Feet Ring Road, 1026, Dev Atelier, Opposite Dev Auram, Prahladnagar, Ahmedabad, GJ, IND, 380015

Website

https://www.novateor.com

Novateor Research Laboratories Ltd is a company engaged in the development of novel personal care products that are intended to provide safe, easy, and innovative approaches to the existing traditional personal care solutions. The company's teeth-whitening products are sold under the brand name SmiloShine. The company manufactures three different variants of teeth whitening strips, teeth whitening toothpaste and brush, kids's toothpaste and tongue cleaner, and teeth whitening gel.

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