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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shanmuga Hospital's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.97%.
As of today (2026-08-05), Shanmuga Hospital's WACC % is 12.05%. Shanmuga Hospital's ROC % is 9.14% (calculated using TTM income statement data).
Shanmuga Hospital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Shanmuga Hospital's WACC % is 12.05%. Shanmuga Hospital's ROC % is 9.14% (calculated using TTM income statement data).
Shanmuga Hospital 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.
Shanmuga Hospital ROC % Related Terms
Shanmuga Hospital ROC % Historical Data
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The historical data trend for Shanmuga Hospital'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.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Shanmuga Hospital (BOM:544365) has a ROC % of 7.97% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shanmuga Hospital and its competitors.
Is Shanmuga Hospital's ROC % too high?
Shanmuga Hospital's current ROC % is 7.97%. The Healthcare Providers & Services industry median ROC % is 3.18. Shanmuga Hospital's value of 7.97% is 150.6% above this industry median. Overall, Shanmuga Hospital has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Shanmuga Hospital's ROC % compare to HCA and THC?
Shanmuga Hospital's ROC % of 7.97% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.18. Shanmuga Hospital's value of 7.97% is 150.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.18, based on 667 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shanmuga Hospital's current ROC % of 7.97% is 150.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shanmuga Hospital and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanmuga Hospital's current ROC % is 7.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanmuga Hospital stock overvalued right now?
Shanmuga Hospital (BOM:544365) has a current ROC % of 7.97%. The current ROC % is 7.97% and 150.6% above the Healthcare Providers & Services industry median of 3.18. Shanmuga Hospital's overall GF Score™ is 21/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Shanmuga Hospital (BOM:544365), the current ROC % is 7.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Shanmuga Hospital Ltd is a Multispecialty Hospital. It is Equipped with developed healthcare technology and has an approximately 151-bed capacity, it addresses the community's medical needs, serving patients from nearby regions. The hospital is committed to high-quality healthcare services, including prevention, treatment, and rehabilitation. Its medical facility encompasses an Oncology Unit, High Dependency Unit, Emergency Department, Outpatient Consultation Services, Cardiac Care Unit, Intensive Care Unit, Neonatal Intensive Care Unit, Labour Room, Endoscopy Room, Neurosurgery Unit, and Cardiac Unit. The Diagnostic Centre features developed laboratory and imaging technologies such as X-ray, Ultrasound, Computed Tomography scan, Magnetic Resonance Imaging and modular operational theatres.
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