Electro Force (India) (NSE:EFORCE) ROC % : -2.81% (As of Mar. 2024)

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What is Electro Force (India) 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 %. Electro Force (India)'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -2.81%.

As of today (2025-03-26), Electro Force (India)'s WACC % is 12.77%. Electro Force (India)'s ROC % is 8.40% (calculated using TTM income statement data). Electro Force (India) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Electro Force (India) ROC % Historical Data

The historical data trend for Electro Force (India)'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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Electro Force (India) ROC % Chart

Electro Force (India) Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

-17.90

38.52

16.07

8.28

Electro Force (India) Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23	Mar24
ROC %	-	-	-	20.77	-2.81

Electro Force (India) ROC % Calculation

Electro Force (India)'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 )
=	82.352 * ( 1 - 27.05% )	/	( (669.936	+	781.649)	/ 2 )
=	60.075784	/	725.7925
=	8.28 %

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	))
=	723.151	-	43.846	-	( 9.369	-	max(0, 538.554	-	685.913	+	9.369	))
=	669.936

	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	))
=	856.452	-	63.293	-	( 11.51	-	max(0, 153.598	-	813.529	+	11.51	))
=	781.649

Electro Force (India)'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: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-24.742 * ( 1 - 16.01% )	/	( (694.876	+	781.649)	/ 2 )
=	-20.7808058	/	738.2625
=	-2.81 %

where

	Invested Capital		(Q: Sep. 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	))
=	782.7	-	76.052	-	( 11.772	-	max(0, 526.155	-	744.633	+	11.772	))
=	694.876

	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	))
=	856.452	-	63.293	-	( 11.51	-	max(0, 153.598	-	813.529	+	11.51	))
=	781.649

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

Electro Force (India) (NSE:EFORCE) 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, Electro Force (India)'s WACC % is 12.77%. Electro Force (India)'s ROC % is 8.40% (calculated using TTM income statement data). Electro Force (India) 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.

Electro Force (India) ROC % Related Terms

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Electro Force (India) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Electro Force (India) Ltd (NSE:EFORCE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

39/5, Mauje Waliv Vasai (East), Taluka - Vasai East, District - Palghar, Thane, MH, IND, 401 208

Website

https://www.electroforceindia.com

Electro Force (India) Ltd is engaged in designing and manufacturing precision sheet metal components, plastic injection moldings, and related assemblies. It includes product designing, prototyping, and process development for precision sheet metal components & plastic products & assemblies for the electrical & switchgear industry. The Company conducts its business in only one Geographical Segment which is India.

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