Euro India Fresh Foods (NSE:EIFFL) ROC % : 3.27% (As of Mar. 2023)

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What is Euro India Fresh Foods 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 %. Euro India Fresh Foods's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 3.27%.

As of today (2024-06-06), Euro India Fresh Foods's WACC % is 11.21%. Euro India Fresh Foods's ROC % is 3.27% (calculated using TTM income statement data). Euro India Fresh Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Euro India Fresh Foods ROC % Historical Data

The historical data trend for Euro India Fresh Foods'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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Euro India Fresh Foods ROC % Chart

Euro India Fresh Foods Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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1.68

1.42

3.50

3.04

3.27

Euro India Fresh Foods Semi-Annual Data
	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
ROC %	Get a 7-Day Free Trial							1.68	1.42	3.50	3.04	3.27

Euro India Fresh Foods ROC % Calculation

Euro India Fresh Foods's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	49.7 * ( 1 - 29.24% )	/	( (1058.8	+	1093.4)	/ 2 )
=	35.16772	/	1076.1
=	3.27 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	1155.2	-	86.3	-	( 10.1	-	max(0, 360.7	-	802.4	+	10.1	))
=	1058.8

	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	))
=	1220.4	-	122.5	-	( 4.5	-	max(0, 423.8	-	875	+	4.5	))
=	1093.4

Euro India Fresh Foods's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	49.7 * ( 1 - 29.24% )	/	( (1058.8	+	1093.4)	/ 2 )
=	35.16772	/	1076.1
=	3.27 %

where

	Invested Capital		(Q: Mar. 2022 )
=	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	))
=	1155.2	-	86.3	-	( 10.1	-	max(0, 360.7	-	802.4	+	10.1	))
=	1058.8

	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	))
=	1220.4	-	122.5	-	( 4.5	-	max(0, 423.8	-	875	+	4.5	))
=	1093.4

Note: The Operating Income data used here is one times the annual (Mar. 2023) data.

Euro India Fresh Foods (NSE:EIFFL) 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, Euro India Fresh Foods's WACC % is 11.21%. Euro India Fresh Foods's ROC % is 3.27% (calculated using TTM income statement data). Euro India Fresh Foods 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.

Euro India Fresh Foods ROC % Related Terms

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Euro India Fresh Foods (NSE:EIFFL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Euro India Fresh Foods Ltd (NSE:EIFFL) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Andheri Kurla Road, Near Cinemax Theater, 501, 5th Floor, The Summit Business Bay, Andheri (East), Mumbai, MH, IND, 400059

Website

https://www.euroindiafoods.com

Euro India Fresh Foods Ltd is an Indian Food business firm. The company is engaged in manufacturing and selling processed food and beverages which is the only business segment. Company products include; Euro Chips, Euro Namkeens, Euro Getmore, Euro Wheels, packaged drinking water Euro Spa, Euro's mango drink Fresho, and lemon-based drinks Euro Lemoni. The firm has outlets in cities such as Surat, Ahmedabad, Bhavnagar, Mumbai and Others. Euro also exports products overseas however the majority of the revenue accrues from domestic sales.

Euro India Fresh Foods (NSE:EIFFL) Headlines

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