ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Service Care's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was 28.42%.
As of today (2024-06-09), Service Care's WACC % is 0.00%. Service Care's ROC % is 0.00% (calculated using TTM income statement data).
Service Care earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Service Care ROC % Historical Data
The historical data trend for Service Care'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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Service Care ROC % Chart
Service Care Annual Data
Trend
Mar20
Mar21
Mar22
ROC %
20.56
4.14
28.42
Service Care Semi-Annual Data
Mar20
Mar21
Mar22
ROC %
20.56
4.14
28.42
Service Care ROC % Calculation
Service Care's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2022 is calculated as:
Note:
The Operating Income data used here is one times the annual (Mar. 2022) data.
* 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.
Service Care (NSE:SERVICE) 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, Service Care's WACC % is 0.00%. Service Care's ROC % is 0.00% (calculated using TTM income statement data).
Service Care 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.
Service Care ROC % Related Terms
Thank you for viewing the detailed overview of Service Care's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Service Care Ltd is engaged in providing services such as Workspace Administration Services and Workforce Administration Services across all business domains. Workspace Administration services cover all the Integrated Facility Management and Business Services, on the other hand, Workforce Administration services covers all kind of staffing solutions, outsourced recruitment processes, and payroll management. Its operations are in the business of housekeeping facility management service and payroll service.
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