ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gensol Engineering's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 10.19%.
As of today (2026-07-02), Gensol Engineering's WACC % is 0.00%. Gensol Engineering's ROC % is 0.00% (calculated using TTM income statement data).
Gensol Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gensol Engineering (NSE:GENSOL) 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, Gensol Engineering's WACC % is 0.00%. Gensol Engineering's ROC % is 0.00% (calculated using TTM income statement data).
Gensol Engineering 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.
Gensol Engineering ROC % Related Terms
Gensol Engineering ROC % Historical Data
* Premium members only.
The historical data trend for Gensol Engineering'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.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2024) data.
The tax rate is limited to between 0% and 100%.
* 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.
Gensol Engineering (NSE:GENSOL) has a ROC % of 10.19% as of Dec. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gensol Engineering and its competitors.
Is Gensol Engineering's ROC % too high?
Gensol Engineering's current ROC % is 10.19%. The Semiconductors industry median ROC % is 3.74. Gensol Engineering's value of 10.19% is 172.5% above this industry median. Overall, Gensol Engineering has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Gensol Engineering's ROC % compare to FSLR and NXT?
Gensol Engineering's ROC % of 10.19% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Gensol Engineering's value of 10.19% is 172.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gensol Engineering's current ROC % of 10.19% is 172.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gensol Engineering and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gensol Engineering's current ROC % is 10.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gensol Engineering stock overvalued right now?
Gensol Engineering (NSE:GENSOL) has a current ROC % of 10.19%. The current ROC % is 10.19% and 172.5% above the Semiconductors industry median of 3.74. Gensol Engineering's overall GF Score™ is 65/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Gensol Engineering (NSE:GENSOL), the current ROC % is 10.19% as of Dec. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Gensol Engineering Ltd is a renewable energy solutions provider focused on end-to-end solar engineering, procurement, and construction projects. It is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across various countries, including India. The company has two operating segments namely Engineering, advisory & EPC of Solar Power Projects, and Leasing of cars. It generates the majority of its revenue from the Engineering, advisory & EPC of Solar Power Projects segment.
65GF Score
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