Hamid Fabrics (DHA:HFL) ROC % : -3.54% (As of Sep. 2024)

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What is Hamid Fabrics 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 %. Hamid Fabrics's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.54%.

As of today (2025-03-23), Hamid Fabrics's WACC % is 13.31%. Hamid Fabrics's ROC % is -1.10% (calculated using TTM income statement data). Hamid Fabrics earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hamid Fabrics ROC % Historical Data

The historical data trend for Hamid Fabrics'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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Hamid Fabrics ROC % Chart

Hamid Fabrics Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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4.37

2.21

-1.21

2.89

0.95

Hamid Fabrics Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-2.96	3.14	1.36	-1.71	-3.54

Hamid Fabrics ROC % Calculation

Hamid Fabrics's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	183.144 * ( 1 - 76.71% )	/	( (4463.016	+	4558.668)	/ 2 )
=	42.6542376	/	4510.842
=	0.95 %

where

	Invested Capital		(A: Jun. 2022 )
=	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	))
=	5165.058	-	548.797	-	( 153.245	-	max(0, 1375.471	-	2170.751	+	153.245	))
=	4463.016

	Invested Capital		(A: Jun. 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	))
=	4969.981	-	332.088	-	( 79.225	-	max(0, 1228.607	-	2031.056	+	79.225	))
=	4558.668

Hamid Fabrics'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 )
=	-163.8 * ( 1 - -3.28% )	/	( (4639.889	+	4913.992)	/ 2 )
=	-169.17264	/	4776.9405
=	-3.54 %

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	))
=	4742.28	-	94.214	-	( 8.177	-	max(0, 902.964	-	1928.642	+	8.177	))
=	4639.889

	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	))
=	5710.62	-	782.806	-	( 13.822	-	max(0, 1610.402	-	2946.897	+	13.822	))
=	4913.992

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

Hamid Fabrics (DHA:HFL) 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, Hamid Fabrics's WACC % is 13.31%. Hamid Fabrics's ROC % is -1.10% (calculated using TTM income statement data). Hamid Fabrics 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.

Hamid Fabrics ROC % Related Terms

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Hamid Fabrics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Hamid Fabrics PLC (DHA:HFL) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

24, Gulshan C/A, Circle-2, Hamid Tower (7th Floor), Dhaka, BGD, 1212

Website

https://www.mahingroup.com

Hamid Fabrics PLC is a manufacturer of solid-dye fabric for the readymade garment industry. The company's product range includes cotton fabrics as well as blended fabrics such as cotton/polyester, cotton/viscose, nylon/cotton and cotton/lycra. The weaving unit produces grey fabrics in various designs and constructions such as Twill, Canvas, Oxford, Rib stop, Rib cord, Ottoman, Herringbone, and various dobby designs of different weight ranges. The finishing mix of Hamid Fabrics Limited comprises water repellent, fireproof, wrinkle-free, Teflon coating, aero finish and chintz finish. The company caters to the markets in the United States of American and the European Union.

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