Excel Industries (NSE:EXCELINDUS) ROC % : 1.00% (As of Mar. 2024)

View and export this data going back to 2004. Start your Free Trial

What is Excel Industries 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 %. Excel Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.00%.

As of today (2024-06-04), Excel Industries's WACC % is 10.42%. Excel Industries's ROC % is -0.44% (calculated using TTM income statement data). Excel Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Excel Industries ROC % Historical Data

The historical data trend for Excel Industries'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.

* Premium members only.

Excel Industries ROC % Chart

Excel Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

11.72

7.95

14.23

5.90

-0.44

Excel Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															0.52	-0.27	-1.39	-1.20	1.00

Excel Industries ROC % Calculation

Excel Industries'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 )
=	-77.73 * ( 1 - 24.9% )	/	( (12374.622	+	13937.406)	/ 2 )
=	-58.37523	/	13156.014
=	-0.44 %

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	))
=	14925.769	-	1121.438	-	( 1429.709	-	max(0, 1233.704	-	4474.266	+	1429.709	))
=	12374.622

	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	))
=	17955.301	-	1857.691	-	( 2160.204	-	max(0, 2031.203	-	5197.23	+	2160.204	))
=	13937.406

Excel Industries'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: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	185.396 * ( 1 - 25.03% )	/	( (0	+	13937.406)	/ 1 )
=	138.9913812	/	13937.406
=	1.00 %

where

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

	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	))
=	17955.301	-	1857.691	-	( 2160.204	-	max(0, 2031.203	-	5197.23	+	2160.204	))
=	13937.406

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

Excel Industries (NSE:EXCELINDUS) 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, Excel Industries's WACC % is 10.42%. Excel Industries's ROC % is -0.44% (calculated using TTM income statement data). Excel Industries 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.

Excel Industries ROC % Related Terms

Thank you for viewing the detailed overview of Excel Industries's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Excel Industries (NSE:EXCELINDUS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Excel Industries Ltd (NSE:EXCELINDUS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

500650:India

Address

184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai, MH, IND, 400 102

Website

https://www.excelind.co.in

Excel Industries Ltd is a chemical manufacturer based in India. The company is organized into two business segments namely; Chemicals segment which comprises of industrial and specialty chemicals, pesticides intermediates, polymer and pharma intermediates; and Environment and Biotech segment which comprises of soil enricher, biopesticides, and bioproducts. Apart from these segments company also focuses on waste management area where it converts solid waste into organic soil conditioner. The majority of its revenues come from the Indian market, while it also has a presence in the International market.

Excel Industries (NSE:EXCELINDUS) Headlines

No Headlines