Shoora Designs (BOM:543970) ROC % : -13.41% (As of Sep. 2024)

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What is Shoora Designs 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 %. Shoora Designs's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -13.41%.

As of today (2024-12-14), Shoora Designs's WACC % is 12.83%. Shoora Designs's ROC % is -9.41% (calculated using TTM income statement data). Shoora Designs earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Shoora Designs ROC % Historical Data

The historical data trend for Shoora Designs'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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Shoora Designs ROC % Chart

Shoora Designs Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

224.75

15.02

-1.17

Shoora Designs Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial			-	-	3.85	-5.24	-13.41

Shoora Designs ROC % Calculation

Shoora Designs'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 )
=	0.085 * ( 1 - 427.52% )	/	( (15.045	+	32.388)	/ 2 )
=	-0.278392	/	23.7165
=	-1.17 %

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	))
=	16.896	-	0.353	-	( 1.498	-	max(0, 1.038	-	16.539	+	1.498	))
=	15.045

	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	))
=	34.921	-	0.286	-	( 2.247	-	max(0, 1.086	-	34.447	+	2.247	))
=	32.388

Shoora Designs'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 )
=	-6.416 * ( 1 - 24.64% )	/	( (32.388	+	39.731)	/ 2 )
=	-4.8350976	/	36.0595
=	-13.41 %

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	))
=	34.921	-	0.286	-	( 2.247	-	max(0, 1.086	-	34.447	+	2.247	))
=	32.388

	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	))
=	75.723	-	0.666	-	( 35.326	-	max(0, 2.669	-	72.763	+	35.326	))
=	39.731

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

Shoora Designs (BOM:543970) 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, Shoora Designs's WACC % is 12.83%. Shoora Designs's ROC % is -9.41% (calculated using TTM income statement data). Shoora Designs 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.

Shoora Designs ROC % Related Terms

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Shoora Designs Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Shoora Designs Ltd (BOM:543970) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Haththupura char rasta, LT House No.7/3388/A, 6th floor, C/1, 601, Diamond Apartments Co-op Housing Society, Surat, GJ, IND, 395003

Website

https://www.shooradesigns.com

Shoora Designs Ltd is engaged in the business of procuring rough diamonds through suppliers, internally planning and mapping rough diamonds, and out-souring the process of cleaving, laser cutting, and polishing from local job-workers in the domestic market of Surat, and is selling the said polished cut-diamonds to the wholesalers or retailers with business concentration pre-dominantly in Surat, Gujarat, and the newly-explored market of Mumbai, Maharashtra.

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