Chemcon Speciality Chemicals (NSE:CHEMCON) ROC % : 7.28% (As of Dec. 2024)

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What is Chemcon Speciality Chemicals 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 %. Chemcon Speciality Chemicals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 7.28%.

As of today (2025-04-03), Chemcon Speciality Chemicals's WACC % is 11.18%. Chemcon Speciality Chemicals's ROC % is 3.77% (calculated using TTM income statement data). Chemcon Speciality Chemicals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Chemcon Speciality Chemicals ROC % Historical Data

The historical data trend for Chemcon Speciality Chemicals'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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Chemcon Speciality Chemicals ROC % Chart

Chemcon Speciality Chemicals Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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30.30

21.94

17.00

11.32

2.52

Chemcon Speciality Chemicals Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															2.91	1.13	2.65	5.05	7.28

Chemcon Speciality Chemicals ROC % Calculation

Chemcon Speciality Chemicals'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 )
=	167.4 * ( 1 - 26.9% )	/	( (4671.917	+	5046.34)	/ 2 )
=	122.3694	/	4859.1285
=	2.52 %

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	))
=	5533.568	-	256.778	-	( 604.873	-	max(0, 912.54	-	3113.534	+	604.873	))
=	4671.917

	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	))
=	5452.42	-	175.278	-	( 230.802	-	max(0, 637.007	-	3531.674	+	230.802	))
=	5046.34

Chemcon Speciality Chemicals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	343.2 * ( 1 - 25.67% )	/	( (3505.104	+	0)	/ 1 )
=	255.10056	/	3505.104
=	7.28 %

where

	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	))
=	5605.883	-	172.317	-	( 1928.462	-	max(0, 673.337	-	3655.906	+	1928.462	))
=	3505.104

	Invested Capital		(Q: Dec. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

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

Chemcon Speciality Chemicals (NSE:CHEMCON) 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, Chemcon Speciality Chemicals's WACC % is 11.18%. Chemcon Speciality Chemicals's ROC % is 3.77% (calculated using TTM income statement data). Chemcon Speciality Chemicals 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.

Chemcon Speciality Chemicals ROC % Related Terms

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Chemcon Speciality Chemicals Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Chemcon Speciality Chemicals Ltd (NSE:CHEMCON) » Definitions » ROC %

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543233:India

Address

Old Padra Road, Akshar Chowk, 9th Floor, Onyx Business Center, Vadodara, GJ, IND, 390020

Website

https://www.cscpl.com

Chemcon Speciality Chemicals Ltd manufactures specialized chemicals including Hexamethyldisilazane and Chloromethyl Isopropyl Carbonate, which are mainly used in the pharmaceutical industry. The company also produce inorganic bromides such as Calcium Bromide, Zinc Bromide, and Sodium Bromide, which are primarily used as completion fluids in the oilfields industry. The company's product lines include Oilfield Chemicals, Pharmaceutical Chemicals, Silanes, and Contract Manufacturing. It operates in India and internationally, with the majority of its revenue coming from India. In addition to the sale of products, the company also generates revenue from the sale of services.

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