Mandeep Auto Industries (NSE:MANDEEP) ROC % : 8.07% (As of Mar. 2023)

View and export this data going back to 2024. Start your Free Trial

What is Mandeep Auto 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 %. Mandeep Auto Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 8.07%.

As of today (2024-12-14), Mandeep Auto Industries's WACC % is 11.33%. Mandeep Auto Industries's ROC % is 8.07% (calculated using TTM income statement data). Mandeep Auto Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mandeep Auto Industries ROC % Historical Data

The historical data trend for Mandeep Auto 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.

Mandeep Auto Industries ROC % Chart

Mandeep Auto Industries Annual Data

Trend

Mar21

Mar22

Mar23

ROC %

10.89

10.64

8.07

Mandeep Auto Industries Semi-Annual Data
	Mar21	Mar22	Mar23
ROC %	10.89	10.64	8.07

Mandeep Auto Industries ROC % Calculation

Mandeep Auto Industries'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 )
=	12.724 * ( 1 - 26% )	/	( (97.677	+	135.752)	/ 2 )
=	9.41576	/	116.7145
=	8.07 %

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	))
=	129.781	-	31.641	-	( 0.463	-	max(0, 57.299	-	87.315	+	0.463	))
=	97.677

	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	))
=	196.315	-	60.267	-	( 0.296	-	max(0, 125.529	-	154.969	+	0.296	))
=	135.752

Mandeep Auto Industries'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 )
=	12.724 * ( 1 - 26% )	/	( (97.677	+	135.752)	/ 2 )
=	9.41576	/	116.7145
=	8.07 %

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	))
=	129.781	-	31.641	-	( 0.463	-	max(0, 57.299	-	87.315	+	0.463	))
=	97.677

	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	))
=	196.315	-	60.267	-	( 0.296	-	max(0, 125.529	-	154.969	+	0.296	))
=	135.752

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

Mandeep Auto Industries (NSE:MANDEEP) 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, Mandeep Auto Industries's WACC % is 11.33%. Mandeep Auto Industries's ROC % is 8.07% (calculated using TTM income statement data). Mandeep Auto 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.

Mandeep Auto Industries ROC % Related Terms

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

Mandeep Auto Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Mandeep Auto Industries Ltd (NSE:MANDEEP) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No 26, Nangla, Faridabad, HR, IND, 121001

Website

https://www.mandeepautoindustries.com

Mandeep Auto Industries Ltd is engaged in the business of manufacturing and supplying sheet metal components, auto parts, and all types of sprocket gears and machined components. It products are use in various industries such as tractor, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry etc.

Mandeep Auto Industries Headlines

No Headlines