Excellent Wires and Packaging (NSE:EXCELLENT) ROC % : 11.10% (As of Sep. 2024)

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What is Excellent Wires and Packaging 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 %. Excellent Wires and Packaging's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 11.10%.

As of today (2025-03-24), Excellent Wires and Packaging's WACC % is 12.83%. Excellent Wires and Packaging's ROC % is 12.99% (calculated using TTM income statement data). Excellent Wires and Packaging 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.

Excellent Wires and Packaging ROC % Historical Data

The historical data trend for Excellent Wires and Packaging'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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Excellent Wires and Packaging ROC % Chart

Excellent Wires and Packaging Annual Data

Trend

Mar22

Mar23

Mar24

ROC %

9.07

16.09

25.64

Excellent Wires and Packaging Semi-Annual Data
	Mar22	Mar23	Sep23	Mar24	Sep24
ROC %	-	-	41.79	18.98	11.10

Excellent Wires and Packaging ROC % Calculation

Excellent Wires and Packaging'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 )
=	13.997 * ( 1 - 26.32% )	/	( (23.397	+	57.056)	/ 2 )
=	10.3129896	/	40.2265
=	25.64 %

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	))
=	32.469	-	7.833	-	( 1.53	-	max(0, 29.653	-	30.892	+	1.53	))
=	23.397

	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	))
=	70.508	-	5.902	-	( 7.55	-	max(0, 30.269	-	49.384	+	7.55	))
=	57.056

Excellent Wires and Packaging's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	10.82 * ( 1 - 25.17% )	/	( (57.056	+	88.813)	/ 2 )
=	8.096606	/	72.9345
=	11.10 %

where

	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	))
=	70.508	-	5.902	-	( 7.55	-	max(0, 30.269	-	49.384	+	7.55	))
=	57.056

	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	))
=	192.772	-	9.619	-	( 94.34	-	max(0, 14.481	-	174.594	+	94.34	))
=	88.813

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

Excellent Wires and Packaging (NSE:EXCELLENT) 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, Excellent Wires and Packaging's WACC % is 12.83%. Excellent Wires and Packaging's ROC % is 12.99% (calculated using TTM income statement data). Excellent Wires and Packaging 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.

Excellent Wires and Packaging ROC % Related Terms

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Excellent Wires and Packaging Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Excellent Wires and Packaging Ltd (NSE:EXCELLENT) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Jay Chamundeshwari Industrial Complex, Unit No. 12,13,113 Building 2 S. No. 54, Naikpada, Palghar, Vasai, MH, IND, 401208

Website

https://www.excellentwiresandpackaging.com

Excellent Wires and Packaging Ltd is a manufacturer and exporter of various types of wires, such as Spring Steel Wire, High Carbon Wire, Galvanised Wire or GI Wire, Round Stitching Wire, Flat Stitching Wire, Mild Steel (M.S.) & Low Carbon Wire, H.B. & H.H.B. Wire, Annealed Wire, Brass Wire, Copper Wire, Stainless Steel Wire, Spiral Wires, Binding Wires, Bailing Wires and all types & sizes of Wire Ropes made of high carbon or SS Wire With or without PVC Coating for multiple applications under the brand name of Excellent. It also manufactures packaging products like PP Strapping Rolls and BOPP Self Adhesive Tapes under the brand name of Excellent. The company supplies its products to various industries viz. Packaging, Engineering, Stationery, Imitation Jewellry, Wires & Cable, etc.

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