Senco Gold (BOM:543936) ROC % : 12.76% (As of Mar. 2024)

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What is Senco Gold 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 %. Senco Gold's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 12.76%.

As of today (2024-05-26), Senco Gold's WACC % is 11.71%. Senco Gold's ROC % is 8.60% (calculated using TTM income statement data). Senco Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Senco Gold ROC % Historical Data

The historical data trend for Senco Gold'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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Senco Gold ROC % Chart

Senco Gold Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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10.15

8.16

10.78

8.45

8.27

Senco Gold Semi-Annual Data
	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial								-	5.03	11.94	4.81	12.76

Senco Gold ROC % Calculation

Senco Gold'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 )
=	3154.01 * ( 1 - 27.46% )	/	( (27357.62	+	27943.63)	/ 2 )
=	2287.918854	/	27650.625
=	8.27 %

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	))
=	29053.19	-	1600.74	-	( 94.83	-	max(0, 17442.01	-	25010.02	+	94.83	))
=	27357.62

	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	))
=	37226.58	-	2223.5	-	( 7059.45	-	max(0, 21115.48	-	32833.73	+	7059.45	))
=	27943.63

Senco Gold's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	4690.46 * ( 1 - 28.65% )	/	( (24499.54	+	27943.63)	/ 2 )
=	3346.64321	/	26221.585
=	12.76 %

where

	Invested Capital		(Q: Sep. 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	))
=	31852.41	-	2417.72	-	( 4935.15	-	max(0, 17352.21	-	26908.4	+	4935.15	))
=	24499.54

	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	))
=	37226.58	-	2223.5	-	( 7059.45	-	max(0, 21115.48	-	32833.73	+	7059.45	))
=	27943.63

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

Senco Gold (BOM:543936) 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, Senco Gold's WACC % is 11.71%. Senco Gold's ROC % is 8.60% (calculated using TTM income statement data). Senco Gold 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.

Senco Gold ROC % Related Terms

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Senco Gold (BOM:543936) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Senco Gold Ltd (BOM:543936) » Definitions » ROC %

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SENCO:India

Address

A.J.C. Bose Road, Unit no. 1001, 10th floor, 41A, Diamond Prestige, Kolkata, WB, IND, 700 017

Website

https://www.sencogoldanddiamonds.com

Senco Gold Ltd is a pan-India jewellery retail company with a history of more than five decades and has a fourth-generation entrepreneur in the jewellery industry as its Promoter. The company primarily sell gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semi-precious stones and other metals. Its other offerings also include costume jewellery, gold and silver coins and utensils made of silver. Its products are sold under the Senco Gold & Diamonds tradename, through multiple channels, including its 75 Company Operated Showrooms and 61 Franchisee Showrooms and various online platforms, including its website.

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