Milton Industries (NSE:MILTON) ROC % : 6.99% (As of Mar. 2024)

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What is Milton 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 %. Milton Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 6.99%.

As of today (2024-12-12), Milton Industries's WACC % is 12.09%. Milton Industries's ROC % is 6.99% (calculated using TTM income statement data). Milton Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Milton Industries ROC % Historical Data

The historical data trend for Milton 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.

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Milton Industries ROC % Chart

Milton Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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10.44

7.94

7.52

6.17

6.99

Milton Industries Semi-Annual Data
	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23	Mar24
ROC %	Get a 7-Day Free Trial							10.44	7.94	7.52	6.17	6.99

Milton Industries ROC % Calculation

Milton 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 )
=	59.152 * ( 1 - 25.74% )	/	( (611.054	+	645.903)	/ 2 )
=	43.9262752	/	628.4785
=	6.99 %

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	))
=	740.862	-	117.9	-	( 11.908	-	max(0, 258.143	-	606.917	+	11.908	))
=	611.054

	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	))
=	731.456	-	78.904	-	( 6.649	-	max(0, 224.391	-	609.736	+	6.649	))
=	645.903

Milton 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: Mar. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	59.152 * ( 1 - 25.74% )	/	( (611.054	+	645.903)	/ 2 )
=	43.9262752	/	628.4785
=	6.99 %

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	))
=	740.862	-	117.9	-	( 11.908	-	max(0, 258.143	-	606.917	+	11.908	))
=	611.054

	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	))
=	731.456	-	78.904	-	( 6.649	-	max(0, 224.391	-	609.736	+	6.649	))
=	645.903

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

Milton Industries (NSE:MILTON) 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, Milton Industries's WACC % is 12.09%. Milton Industries's ROC % is 6.99% (calculated using TTM income statement data). Milton 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.

Milton Industries ROC % Related Terms

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Milton Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Milton Industries Ltd (NSE:MILTON) » Definitions » ROC %

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Address

Ashram Road, 1/2, Chitra-Ami Appartment, Opposite La Gajjar Chamber, Ahmedabad, GJ, IND, 380009

Website

https://www.miltonindustries.in

Milton Industries Ltd is engaged in the manufacturing of laminated sheets and other allied products. The firm produces artificial leather cloth and glass fiber reinforced epoxy (GFRE) sheets. It also manufactures, exports high-pressure laminates, industrial laminates, laminated boards, flooring laminates, artificial leather cloth, and other products. The business operates in three segments: Laminate, Rexine, and GFRE, of which the majority of the revenue comes from the GFRE division. The company's products are applicable on walls, doors, windows, cupboards, tabletops, hotels, cash counters and home kitchens. The majority of the revenue comes from the Indian market.

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