Greenchef Appliances (NSE:GREENCHEF) ROC % : 5.02% (As of Mar. 2024)

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What is Greenchef Appliances 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 %. Greenchef Appliances's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 5.02%.

As of today (2025-04-09), Greenchef Appliances's WACC % is 9.55%. Greenchef Appliances's ROC % is 5.02% (calculated using TTM income statement data). Greenchef Appliances earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Greenchef Appliances ROC % Historical Data

The historical data trend for Greenchef Appliances'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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Greenchef Appliances ROC % Chart

Greenchef Appliances Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

5.33

4.93

2.71

9.25

5.02

Greenchef Appliances Semi-Annual Data
	Mar20	Mar21	Mar22	Mar23	Mar24
ROC %	5.33	4.93	2.71	9.25	5.02

Greenchef Appliances ROC % Calculation

Greenchef Appliances'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 )
=	108.6 * ( 1 - 18.93% )	/	( (1392.9	+	2111.8)	/ 2 )
=	88.04202	/	1752.35
=	5.02 %

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	))
=	1943	-	534.2	-	( 15.9	-	max(0, 1011.2	-	1494.3	+	15.9	))
=	1392.9

	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	))
=	2897.8	-	374.6	-	( 411.4	-	max(0, 1472	-	2127.8	+	411.4	))
=	2111.8

Greenchef Appliances'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: Mar. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	108.6 * ( 1 - 18.93% )	/	( (1392.9	+	2111.8)	/ 2 )
=	88.04202	/	1752.35
=	5.02 %

where

	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	))
=	1943	-	534.2	-	( 15.9	-	max(0, 1011.2	-	1494.3	+	15.9	))
=	1392.9

	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	))
=	2897.8	-	374.6	-	( 411.4	-	max(0, 1472	-	2127.8	+	411.4	))
=	2111.8

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

Greenchef Appliances (NSE:GREENCHEF) 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, Greenchef Appliances's WACC % is 9.55%. Greenchef Appliances's ROC % is 5.02% (calculated using TTM income statement data). Greenchef Appliances 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.

Greenchef Appliances ROC % Related Terms

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Greenchef Appliances Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Greenchef Appliances Ltd (NSE:GREENCHEF) » Definitions » ROC %

Traded in Other Exchanges

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Address

Niduvanda Village, Sompura Hobli, Plot No. 246, Sompura 1st Stage, Sy No. 133 & 141, Nelemangala Taluk Devarahosahalli Nelamangala, Bengaluru, KA, IND, 562111

Website

https://www.greenchef.in

Greenchef Appliances Ltd is engaged in the business of manufacturing and marketing a wide range of kitchen appliances under the brand name Greenchef. The kitchen appliances of the company include a wide range of solutions comprising Gas Stoves, Pressure Cookers, Mixer Grinders, Wet Grinders, Electric Rice Cooker, Induction Cooktops, Non-stick Cookwares like Tawa, Fry Pans, Kadai, Biriyani Pot, Tadka Pan, Paniyarakkal, Appamchetty, etc, Kettles, Hose Pipes, Gas Cylinder Trolley and others. The products of the company are offered at different pricing points to meet diverse customer requirements.

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