Boss Packaging Solutions (NSE:BOSS) ROC % : 24.95% (As of Mar. 2024)

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What is Boss Packaging Solutions 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 %. Boss Packaging Solutions's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 24.95%.

As of today (2025-03-02), Boss Packaging Solutions's WACC % is 12.95%. Boss Packaging Solutions's ROC % is 24.95% (calculated using TTM income statement data). Boss Packaging Solutions generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Boss Packaging Solutions ROC % Historical Data

The historical data trend for Boss Packaging Solutions'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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Boss Packaging Solutions ROC % Chart

Boss Packaging Solutions Annual Data

Trend

Mar22

Mar23

Mar24

ROC %

29.95

52.29

24.95

Boss Packaging Solutions Semi-Annual Data
	Mar22	Mar23	Mar24
ROC %	29.95	52.29	24.95

Boss Packaging Solutions ROC % Calculation

Boss Packaging Solutions'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 )
=	15.035 * ( 1 - 27.27% )	/	( (25.649	+	62.015)	/ 2 )
=	10.9349555	/	43.832
=	24.95 %

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	))
=	53.612	-	25.162	-	( 2.801	-	max(0, 33.331	-	52.189	+	2.801	))
=	25.649

	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	))
=	76.61	-	14.145	-	( 0.45	-	max(0, 28.252	-	75.152	+	0.45	))
=	62.015

Boss Packaging Solutions'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 )
=	15.035 * ( 1 - 27.27% )	/	( (25.649	+	62.015)	/ 2 )
=	10.9349555	/	43.832
=	24.95 %

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	))
=	53.612	-	25.162	-	( 2.801	-	max(0, 33.331	-	52.189	+	2.801	))
=	25.649

	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	))
=	76.61	-	14.145	-	( 0.45	-	max(0, 28.252	-	75.152	+	0.45	))
=	62.015

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

Boss Packaging Solutions (NSE:BOSS) 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, Boss Packaging Solutions's WACC % is 12.95%. Boss Packaging Solutions's ROC % is 24.95% (calculated using TTM income statement data). Boss Packaging Solutions generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Boss Packaging Solutions ROC % Related Terms

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Boss Packaging Solutions Business Description

Industry

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Traded in Other Exchanges

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Address

Vin Zol Road, Opposite Ramol Mehmdabad Highway, 11-C, Survey No. 56/1/2/3, Ramdev Estate, Near Siddipura Estate, Ahmedabad, GJ, IND, 382445

Website

http://www.bosspackaging.in

Boss Packaging Solutions Ltd is a manufacturer, supplier and exporter of diversified packaging machines, self-adhesive sticker labelling machines, conveyors, turn tables, web sealers, electric tunnels, etc. its products find application in various end-use industries including edible oil, lubricants, chemicals, cosmetics, homecare, pharmaceuticals, viscous liquid, juices and dairy, agriculture and pesticides, food and ancillaries, cosmetic and toiletries, and distilleries and breweries.