Sailani Tours N Travels (BOM:543541) ROC % : 2.20% (As of Sep. 2024)

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What is Sailani Tours N Travels 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 %. Sailani Tours N Travels's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 2.20%.

As of today (2025-03-25), Sailani Tours N Travels's WACC % is 10.49%. Sailani Tours N Travels's ROC % is 2.08% (calculated using TTM income statement data). Sailani Tours N Travels earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sailani Tours N Travels ROC % Historical Data

The historical data trend for Sailani Tours N Travels'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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Sailani Tours N Travels ROC % Chart

Sailani Tours N Travels Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

1.61

0.01

2.85

5.87

3.49

Sailani Tours N Travels Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial			8.19	1.42	4.36	2.06	2.20

Sailani Tours N Travels ROC % Calculation

Sailani Tours N Travels'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 )
=	4.224 * ( 1 - 29.28% )	/	( (87.756	+	83.235)	/ 2 )
=	2.9872128	/	85.4955
=	3.49 %

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	))
=	99.136	-	9.043	-	( 2.337	-	max(0, 29.443	-	66.421	+	2.337	))
=	87.756

	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	))
=	91.327	-	6.399	-	( 1.693	-	max(0, 17.798	-	60.318	+	1.693	))
=	83.235

Sailani Tours N Travels'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 )
=	3.192 * ( 1 - 38.03% )	/	( (83.235	+	96.296)	/ 2 )
=	1.9780824	/	89.7655
=	2.20 %

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	))
=	91.327	-	6.399	-	( 1.693	-	max(0, 17.798	-	60.318	+	1.693	))
=	83.235

	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	))
=	99.932	-	0.167	-	( 3.469	-	max(0, 24.988	-	71.883	+	3.469	))
=	96.296

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

Sailani Tours N Travels (BOM:543541) 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, Sailani Tours N Travels's WACC % is 10.49%. Sailani Tours N Travels's ROC % is 2.08% (calculated using TTM income statement data). Sailani Tours N Travels 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.

Sailani Tours N Travels ROC % Related Terms

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Sailani Tours N Travels Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Sailani Tours N Travels Ltd (BOM:543541) » Definitions » ROC %

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Traded in Other Exchanges

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Address

AD-62, Sector 1, Ground Floor, Salt Lake City, North 24 Parganas, Bhidan Nagar, Kolkata, WB, IND, 700064

Website

https://www.sailanitours.com

Sailani Tours N Travels Ltd operates as a travel company catering to the overall travel needs of Indian and International travelers in the state of Kolkata. Its business is categorized as Leisure Travel, Corporate Travel, Forex, and Visa Processing. It designs travel packages for both individuals and groups for their domestic and international leisure travel. The company provides end-to-end travel solutions including land, air, and cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, visa, passport and medical insurance assistance, and other destination management services. It also provides travel-related foreign exchange & payment solutions.

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