Dhariwalcorp (NSE:DHARIWAL) ROC % : 23.20% (As of Mar. 2024)

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What is Dhariwalcorp 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 %. Dhariwalcorp's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 23.20%.

As of today (2025-04-01), Dhariwalcorp's WACC % is 12.11%. Dhariwalcorp's ROC % is 23.20% (calculated using TTM income statement data). Dhariwalcorp 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.

Dhariwalcorp ROC % Historical Data

The historical data trend for Dhariwalcorp'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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Dhariwalcorp ROC % Chart

Dhariwalcorp Annual Data

Trend

Mar22

Mar23

Mar24

ROC %

14.18

1.57

23.20

Dhariwalcorp Semi-Annual Data
	Mar22	Mar23	Mar24
ROC %	14.18	1.57	23.20

Dhariwalcorp ROC % Calculation

Dhariwalcorp'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 )
=	42.872 * ( 1 - 25.19% )	/	( (97.786	+	178.661)	/ 2 )
=	32.0725432	/	138.2235
=	23.20 %

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	))
=	196.106	-	97.426	-	( 0.894	-	max(0, 165.918	-	180.771	+	0.894	))
=	97.786

	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	))
=	213.13	-	33.29	-	( 1.179	-	max(0, 102.066	-	165.198	+	1.179	))
=	178.661

Dhariwalcorp'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 )
=	42.872 * ( 1 - 25.19% )	/	( (97.786	+	178.661)	/ 2 )
=	32.0725432	/	138.2235
=	23.20 %

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	))
=	196.106	-	97.426	-	( 0.894	-	max(0, 165.918	-	180.771	+	0.894	))
=	97.786

	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	))
=	213.13	-	33.29	-	( 1.179	-	max(0, 102.066	-	165.198	+	1.179	))
=	178.661

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

Dhariwalcorp (NSE:DHARIWAL) 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, Dhariwalcorp's WACC % is 12.11%. Dhariwalcorp's ROC % is 23.20% (calculated using TTM income statement data). Dhariwalcorp 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.

Dhariwalcorp ROC % Related Terms

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Dhariwalcorp Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Dhariwalcorp Ltd (NSE:DHARIWAL) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Pal Link Road, 36, Narayan Nagar, Shobhawaton ki dhani, Jodhpur, RJ, IND, 342001

Website

https://www.dhariwalcorporation.com

Dhariwalcorp Ltd is engaged in the business of trading of a comprehensive range of waxes, industrial chemicals, and petroleum jelly. The company is involved in processing, purchasing, selling, importing, and trading various types of wax, including Paraffin Wax, Micro Wax, Slack Wax, Carnauba Wax, Microcrystalline Waxes, Semi Refined Paraffin Wax, Yellow Beeswax, Hydrocarbon Wax, Montan Wax, Polyethylene Wax, Vegetable Wax, Residue Wax, Palm Wax, BN Micro Wax, Hydrogenated Palm Wax, Micro Slack Wax, PE Wax, Soya Wax, etc. Additionally, the Company trades in industrial chemicals such as Rubber Process Oil, Light Liquid Paraffin (LLP), Citric Acid Monohydrate, Refined Glycerin, Bitumen, Stearic Acid, and Petroleum Jelly, including Paraffin Petroleum Jelly and White Petroleum Jelly.

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