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Jat Holdings (COL:JAT.N0000) ROC % : 0.00% (As of . 20)


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What is Jat Holdings 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 %. Jat Holdings's annualized return on capital (ROC %) for the quarter that ended in . 20 was 0.00%.

As of today (2024-12-14), Jat Holdings's WACC % is 10.19%. Jat Holdings's ROC % is 0.00% (calculated using TTM income statement data). Jat Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Jat Holdings ROC % Historical Data

The historical data trend for Jat Holdings'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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Jat Holdings ROC % Chart

Jat Holdings Annual Data
Trend
ROC %

Jat Holdings Semi-Annual Data
ROC %

Jat Holdings ROC % Calculation

Jat Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Jat Holdings's annualized Return on Capital (ROC %) for the quarter that ended in . 20 is calculated as:

ROC % (Q: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: . 20 ) + Invested Capital (Q: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Note: The Operating Income data used here is one times the annual (. 20) data.

* 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.


Jat Holdings  (COL:JAT.N0000) 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, Jat Holdings's WACC % is 10.19%. Jat Holdings's ROC % is 0.00% (calculated using TTM income statement data). Jat Holdings 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.


Jat Holdings ROC % Related Terms

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Jat Holdings Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
No: 351, Pannipitiya Road, Thalawathugoda, LKA
Jat Holdings PLC is a conglomerate brand in Sri Lanka. Its businesses include Paints, Furnishings, JAT Global, and Brush Master. Its Paint business includes wood coatings, other paints, and brushes. The Furnishings business includes furniture, ceilings, doors, flooring and decking, kitchen wardrobes and vanities, kitchen appliances, and others. The company engages in the business of importing, trading and distributing JAT and Sherwin Williams products to Indian retail, distributors, and industrial markets. Its Brush Master business manufactures paint-related brushes.

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