Nova Agritech (NSE:NOVAAGRI) ROC % : 11.41% (As of Jun. 2024)

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What is Nova Agritech 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 %. Nova Agritech's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 11.41%.

As of today (2025-01-19), Nova Agritech's WACC % is 12.09%. Nova Agritech's ROC % is 9.22% (calculated using TTM income statement data). Nova Agritech earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nova Agritech ROC % Historical Data

The historical data trend for Nova Agritech'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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Nova Agritech ROC % Chart

Nova Agritech Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

13.51

19.59

22.65

23.96

Nova Agritech Quarterly Data
	Mar21	Mar22	Mar23	Jun23	Sep23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial			-	15.31	24.60	-	11.41

Nova Agritech ROC % Calculation

Nova Agritech'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 )
=	432.592 * ( 1 - 15.15% )	/	( (1343.74	+	1720.754)	/ 2 )
=	367.054312	/	1532.247
=	23.96 %

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	))
=	1807.834	-	430.575	-	( 33.519	-	max(0, 989.434	-	1584.103	+	33.519	))
=	1343.74

	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	))
=	2979.918	-	404.577	-	( 854.587	-	max(0, 955.143	-	2720.146	+	854.587	))
=	1720.754

Nova Agritech's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	221.36 * ( 1 - 11.34% )	/	( (1720.754	+	0)	/ 1 )
=	196.257776	/	1720.754
=	11.41 %

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	))
=	2979.918	-	404.577	-	( 854.587	-	max(0, 955.143	-	2720.146	+	854.587	))
=	1720.754

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

Nova Agritech (NSE:NOVAAGRI) 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, Nova Agritech's WACC % is 12.09%. Nova Agritech's ROC % is 9.22% (calculated using TTM income statement data). Nova Agritech 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.

Nova Agritech ROC % Related Terms

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Nova Agritech Business Description

Industry

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544100:India

Address

Sy.No.251/A/1, Singannaguda Village, Mulugu Mandal, Medak, Siddipet, TG, IND, 502279

Website

https://www.novaagri.in

Nova Agritech Ltd is an agri-input manufacturer company. It offers soil health management, crop nutrition, and crop protection products focused on tech-based farmer-driven solutions and also offers ecologically sustainable and nutritionally balanced products. It also manufactures, distributes and market a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) bio stimulant products (d) bio pesticide products (e) Integrated pest management products; (f) new technologies; and (g) crop protection products.

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