Rapid Multimodal Logistics (BOM:544237) ROC % : 44.33% (As of Sep. 2024)

View and export this data going back to 2024. Start your Free Trial

What is Rapid Multimodal Logistics 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 %. Rapid Multimodal Logistics's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 44.33%.

As of today (2025-03-28), Rapid Multimodal Logistics's WACC % is 11.90%. Rapid Multimodal Logistics's ROC % is 30.44% (calculated using TTM income statement data). Rapid Multimodal Logistics 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.

Rapid Multimodal Logistics ROC % Historical Data

The historical data trend for Rapid Multimodal Logistics'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.

* Premium members only.

Rapid Multimodal Logistics ROC % Chart

Rapid Multimodal Logistics Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

23.42

43.80

33.54

Rapid Multimodal Logistics Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial			-	-	32.78	20.63	44.33

Rapid Multimodal Logistics ROC % Calculation

Rapid Multimodal Logistics'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 )
=	26.708 * ( 1 - 26.32% )	/	( (51.705	+	65.624)	/ 2 )
=	19.6784544	/	58.6645
=	33.54 %

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	))
=	69.914	-	16.314	-	( 1.895	-	max(0, 32.025	-	66.39	+	1.895	))
=	51.705

	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	))
=	83.976	-	14.903	-	( 3.449	-	max(0, 28.2	-	81.186	+	3.449	))
=	65.624

Rapid Multimodal Logistics'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 )
=	35.154 * ( 1 - 25.16% )	/	( (65.624	+	53.071)	/ 2 )
=	26.3092536	/	59.3475
=	44.33 %

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	))
=	83.976	-	14.903	-	( 3.449	-	max(0, 28.2	-	81.186	+	3.449	))
=	65.624

	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	))
=	202.98	-	42.27	-	( 107.639	-	max(0, 61.528	-	198.658	+	107.639	))
=	53.071

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

Rapid Multimodal Logistics (BOM:544237) 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, Rapid Multimodal Logistics's WACC % is 11.90%. Rapid Multimodal Logistics's ROC % is 30.44% (calculated using TTM income statement data). Rapid Multimodal Logistics 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.

Rapid Multimodal Logistics ROC % Related Terms

Thank you for viewing the detailed overview of Rapid Multimodal Logistics's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Rapid Multimodal Logistics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Rapid Multimodal Logistics Ltd (BOM:544237) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

New Avadi Road, New No. 44, Old No. 78, Shroff Orchards, First Floor, Kilpauk, Chennai, TN, IND, 600010

Website

http://www.rapidlogistics.in

Rapid Multimodal Logistics Ltd is engaged in the business of providing one-stop logistical solution. It provides an end-to-end logistics solution to manufacturers/traders to transport raw materials or finished goods and provide single as well as multimodal transportation services which involves the coordinated use of multiple modes of transportation (such as road, rail, sea).

Rapid Multimodal Logistics Headlines

No Headlines