ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Donskoy Factory of Radiocomponents OJSC's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 13.49%.
Donskoy Factory of Radiocomponents OJSC (MIC:DZRDP) 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, Donskoy Factory of Radiocomponents OJSC's WACC % is 0.00%. Donskoy Factory of Radiocomponents OJSC's ROC % is 0.00% (calculated using TTM income statement data).
Donskoy Factory of Radiocomponents OJSC 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.
Donskoy Factory of Radiocomponents OJSC ROC % Related Terms
Donskoy Factory of Radiocomponents OJSC ROC % Historical 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.
Donskoy Factory of Radiocomponents OJSC ROC % Chart
Donskoy Factory of Radiocomponents OJSC Annual Data
Note:
The Operating Income data used here is four times the quarterly (Sep. 2023) 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.
Donskoy Factory of Radiocomponents OJSC (MIC:DZRDP) has a ROC % of 13.49% as of Sep. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Donskoy Factory of Radiocomponents OJSC and its competitors.
Is Donskoy Factory of Radiocomponents OJSC's ROC % too high?
Donskoy Factory of Radiocomponents OJSC's current ROC % is 13.49%. The Hardware industry median ROC % is 4.12. Donskoy Factory of Radiocomponents OJSC's value of 13.49% is 227.8% above this industry median. Overall, Donskoy Factory of Radiocomponents OJSC has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Donskoy Factory of Radiocomponents OJSC's ROC % compare to APH and TEL?
Donskoy Factory of Radiocomponents OJSC's ROC % of 13.49% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Donskoy Factory of Radiocomponents OJSC's value of 13.49% is 227.8% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Donskoy Factory of Radiocomponents OJSC's current ROC % of 13.49% is 227.8% 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 Donskoy Factory of Radiocomponents OJSC and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Donskoy Factory of Radiocomponents OJSC's current ROC % is 13.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Donskoy Factory of Radiocomponents OJSC stock overvalued right now?
Donskoy Factory of Radiocomponents OJSC (MIC:DZRDP) has a current ROC % of 13.49%. The current ROC % is 13.49% and 227.8% above the Hardware industry median of 4.12. Donskoy Factory of Radiocomponents OJSC's overall GF Score™ is 17/100. 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 Donskoy Factory of Radiocomponents OJSC (MIC:DZRDP), the current ROC % is 13.49% as of Sep. 2023. 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.
Donskoy Factory of Radiocomponents OJSC Business Description
Donskoy Factory of Radiocomponents OJSC is engaged in the development and manufacture of ceramic parts from vacuum-dense alumina ceramics. The company produces ceramic, metal-ceramic and glass-ceramic cases, insulators, faucets, ceramic lock washers, among others.
17GF Score
Get the complete analysis for MIC:DZRDP
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MIC:DZRDP has been successfully added to your 
