SM Auto Stamping (BOM:543065) ROC % : 0.42% (As of Sep. 2024)

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What is SM Auto Stamping 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 %. SM Auto Stamping's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.42%.

As of today (2025-03-04), SM Auto Stamping's WACC % is -0.05%. SM Auto Stamping's ROC % is 6.76% (calculated using TTM income statement data). SM Auto Stamping 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.

SM Auto Stamping ROC % Historical Data

The historical data trend for SM Auto Stamping'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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SM Auto Stamping ROC % Chart

SM Auto Stamping Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-4.19

-0.68

16.20

10.13

10.69

SM Auto Stamping Semi-Annual Data
	Mar17	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial									13.81	6.24	8.66	13.17	0.42

SM Auto Stamping ROC % Calculation

SM Auto Stamping'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 )
=	53.155 * ( 1 - 38.88% )	/	( (311.582	+	296.471)	/ 2 )
=	32.488336	/	304.0265
=	10.69 %

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	))
=	367.083	-	72.777	-	( 0.761	-	max(0, 156.263	-	138.987	+	0.761	))
=	311.582

	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	))
=	337.318	-	57.468	-	( 0.285	-	max(0, 133.481	-	116.86	+	0.285	))
=	296.471

SM Auto Stamping'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 )
=	1.91 * ( 1 - 33.64% )	/	( (296.471	+	310.632)	/ 2 )
=	1.267476	/	303.5515
=	0.42 %

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	))
=	337.318	-	57.468	-	( 0.285	-	max(0, 133.481	-	116.86	+	0.285	))
=	296.471

	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	))
=	355.15	-	65.964	-	( 0.953	-	max(0, 149.8	-	128.354	+	0.953	))
=	310.632

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

SM Auto Stamping (BOM:543065) 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, SM Auto Stamping's WACC % is -0.05%. SM Auto Stamping's ROC % is 6.76% (calculated using TTM income statement data). SM Auto Stamping 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.

SM Auto Stamping ROC % Related Terms

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SM Auto Stamping Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » SM Auto Stamping Ltd (BOM:543065) » Definitions » ROC %

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Address

J-41, MIDC, Ambad, Nashik, MH, IND, 422010

Website

https://www.smautostamping.com

SM Auto Stamping Ltd is an auto-component manufacturer. The company caters to the sheet metal components and sub-assemblies' requirements of automobile parts/equipment manufacturers. Its product portfolio covers sheet metal pressed components for clutches, brakes, engine mountings, chassis, shaft drive, body trims, bearings, among others which are used in passenger cars, commercial vehicles and tractors. Its products such as deep drawn components and control panel components also find application in electrical equipment industry.

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