QVC Exports (NSE:QVCEL) ROC % : 1.83% (As of Mar. 2024)

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What is QVC Exports 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 %. QVC Exports's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.83%.

As of today (2024-12-11), QVC Exports's WACC % is 10.37%. QVC Exports's ROC % is 1.83% (calculated using TTM income statement data). QVC Exports earns returns that do not match up to its cost of capital. It will destroy value as it grows.

QVC Exports ROC % Historical Data

The historical data trend for QVC Exports'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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QVC Exports ROC % Chart

QVC Exports Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

-0.91

4.60

0.21

1.83

QVC Exports Semi-Annual Data
	Mar21	Mar22	Mar23	Mar24
ROC %	-0.91	4.60	0.21	1.83

QVC Exports ROC % Calculation

QVC Exports'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 )
=	18.208 * ( 1 - 27.56% )	/	( (578.673	+	862.972)	/ 2 )
=	13.1898752	/	720.8225
=	1.83 %

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	))
=	648.981	-	43.296	-	( 27.012	-	max(0, 317.25	-	416.465	+	27.012	))
=	578.673

	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	))
=	938.623	-	76.212	-	( 5.037	-	max(0, 571.018	-	570.457	+	5.037	))
=	862.972

QVC Exports'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 )
=	18.208 * ( 1 - 27.56% )	/	( (578.673	+	862.972)	/ 2 )
=	13.1898752	/	720.8225
=	1.83 %

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	))
=	648.981	-	43.296	-	( 27.012	-	max(0, 317.25	-	416.465	+	27.012	))
=	578.673

	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	))
=	938.623	-	76.212	-	( 5.037	-	max(0, 571.018	-	570.457	+	5.037	))
=	862.972

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

QVC Exports (NSE:QVCEL) 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, QVC Exports's WACC % is 10.37%. QVC Exports's ROC % is 1.83% (calculated using TTM income statement data). QVC Exports 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.

QVC Exports ROC % Related Terms

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QVC Exports Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » QVC Exports Ltd (NSE:QVCEL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

EM Bypass, 6th Floor, South City Business Park 770, Anandapur, Adarsha Nagar, E.K.T, Kolkata, WB, IND, 700107

Website

https://www.qvcgroup.com

QVC Exports Ltd is engaged in the business of dealing in ferro alloys, including but not limited to high carbon silico manganese, low carbon silico manganese, high carbon ferro manganese, high carbon ferro chrome, and ferro silicon. It is also engaged in the dealing in raw materials for manufacturing of steel.

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