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Baheti Recycling Industries (NSE:BAHETI) ROC % : 11.90% (As of Mar. 2024)


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What is Baheti Recycling Industries 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 %. Baheti Recycling Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 11.90%.

As of today (2024-10-31), Baheti Recycling Industries's WACC % is 12.14%. Baheti Recycling Industries's ROC % is 11.90% (calculated using TTM income statement data). Baheti Recycling Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Baheti Recycling Industries ROC % Historical Data

The historical data trend for Baheti Recycling Industries'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.

* Premium members only.

Baheti Recycling Industries ROC % Chart

Baheti Recycling Industries Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
4.73 4.72 7.82 10.48 11.90

Baheti Recycling Industries Semi-Annual Data
Mar20 Mar21 Mar22 Mar23 Mar24
ROC % 4.73 4.72 7.82 10.48 11.90

Baheti Recycling Industries ROC % Calculation

Baheti Recycling Industries'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 )
=195.611 * ( 1 - 22.45% )/( (1084.924 + 1464.551)/ 2 )
=151.6963305/1274.7375
=11.90 %

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))
=1269.719 - 177.143 - ( 7.652 - max(0, 834.972 - 1176.847+7.652))
=1084.924

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))
=1647.349 - 181.252 - ( 1.546 - max(0, 1121.121 - 1462.575+1.546))
=1464.551

Baheti Recycling Industries's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=195.611 * ( 1 - 22.45% )/( (1084.924 + 1464.551)/ 2 )
=151.6963305/1274.7375
=11.90 %

where

Invested Capital(Q: 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))
=1269.719 - 177.143 - ( 7.652 - max(0, 834.972 - 1176.847+7.652))
=1084.924

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))
=1647.349 - 181.252 - ( 1.546 - max(0, 1121.121 - 1462.575+1.546))
=1464.551

Note: The Operating Income data used here is one times the annual (Mar. 2024) 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.


Baheti Recycling Industries  (NSE:BAHETI) 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, Baheti Recycling Industries's WACC % is 12.14%. Baheti Recycling Industries's ROC % is 11.90% (calculated using TTM income statement data). Baheti Recycling Industries 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.


Baheti Recycling Industries ROC % Related Terms

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Baheti Recycling Industries Business Description

Traded in Other Exchanges
N/A
Address
A-2/3, L.R. Apartments, Opposite Police Commissioner Office, Shahibaug, Ahmedabad, GJ, IND, 380 004
Baheti Recycling Industries Ltd is an aluminium recycling company, primarily engaged in processing aluminium based metal scrap to manufacture aluminium alloys in the form of ingots and aluminium de-ox alloys in the form of cubes, ingots, shots and notch bar. The company is also engaged in trading of scrap materials such as aluminium scrap, brass scrap, copper scrap, zinc scrap etc. Its products are being used in various industries, which include automobiles, construction, electrical transmission application, food packaging etc.

Baheti Recycling Industries Headlines

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