Singer Sri Lanka (COL:SINS.N0000) ROC % : 5.76% (As of Sep. 2024)

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What is Singer Sri Lanka 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 %. Singer Sri Lanka's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 5.76%.

As of today (2024-12-14), Singer Sri Lanka's WACC % is 7.94%. Singer Sri Lanka's ROC % is 5.39% (calculated using TTM income statement data). Singer Sri Lanka earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Singer Sri Lanka ROC % Historical Data

The historical data trend for Singer Sri Lanka'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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Singer Sri Lanka ROC % Chart

Singer Sri Lanka Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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4.66

6.29

9.55

4.88

-0.84

Singer Sri Lanka Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-1.77	8.53	2.22	5.31	5.76

Singer Sri Lanka ROC % Calculation

Singer Sri Lanka'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 )
=	2193.925 * ( 1 - 126.96% )	/	( (65264.816	+	76024.554)	/ 2 )
=	-591.48218	/	70644.685
=	-0.84 %

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	))
=	78797.912	-	5717.057	-	( 7816.039	-	max(0, 42857.541	-	56872.937	+	7816.039	))
=	65264.816

	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	))
=	93842.429	-	10963.647	-	( 9133.577	-	max(0, 62097.712	-	68951.94	+	9133.577	))
=	76024.554

Singer Sri Lanka'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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	6437.3 * ( 1 - 33.68% )	/	( (72669.436	+	75662.41)	/ 2 )
=	4269.21736	/	74165.923
=	5.76 %

where

	Invested Capital		(Q: Jun. 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	))
=	92890.318	-	14127.913	-	( 7235.953	-	max(0, 60466.125	-	66559.094	+	7235.953	))
=	72669.436

	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	))
=	93719.715	-	12673.152	-	( 5384.153	-	max(0, 58818.999	-	65344.535	+	5384.153	))
=	75662.41

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Singer Sri Lanka (COL:SINS.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, Singer Sri Lanka's WACC % is 7.94%. Singer Sri Lanka's ROC % is 5.39% (calculated using TTM income statement data). Singer Sri Lanka 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.

Singer Sri Lanka ROC % Related Terms

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Singer Sri Lanka Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Singer Sri Lanka PLC (COL:SINS.N0000) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 112, Havelock Road, Colombo, LKA, 05

Website

https://www.singer.lk

Singer Sri Lanka PLC is a Sri Lanka-based appliance retailer. It is engaged in the marketing of household electrical products. It operates in seven segments including Consumer Electronics which offers televisions, audio, and other electronic products. The Financial Services segment offers leasing, hire purchase, and loans. The furniture segment offers wood and layered furniture, sofa sets, steel furniture, and mattresses. Home Appliances offers refrigerators, washing machines, and deep freezers. Digital Products include laptops and smartphones. The sewing segment offers domestic and industrial sewing machines and general merchandise Other segment offers motorbikes, bicycles, water pumps, paddy threshers, and tractors. The company generates maximum revenue from the Home Appliances segment.

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