ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Smarten Power Systems's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 11.80%.
As of today (2026-06-26), Smarten Power Systems's WACC % is 12.53%. Smarten Power Systems's ROC % is 11.80% (calculated using TTM income statement data).
Smarten Power Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Smarten Power Systems (NSE:SMARTEN) 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, Smarten Power Systems's WACC % is 12.53%. Smarten Power Systems's ROC % is 11.80% (calculated using TTM income statement data).
Smarten Power Systems 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.
* 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.
Note:
The Operating Income data used here is one times the annual (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Smarten Power Systems (NSE:SMARTEN) has a ROC % of 11.80% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Smarten Power Systems and its competitors.
Is Smarten Power Systems' ROC % too high?
Smarten Power Systems' current ROC % is 11.80%. The Semiconductors industry median ROC % is 3.74. Smarten Power Systems' value of 11.80% is 215.5% above this industry median. Overall, Smarten Power Systems has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Smarten Power Systems' ROC % compare to FSLR and NXT?
Smarten Power Systems' ROC % of 11.80% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Smarten Power Systems' value of 11.80% is 215.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,012 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smarten Power Systems's current ROC % of 11.80% is 215.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Smarten Power Systems and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smarten Power Systems's current ROC % is 11.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smarten Power Systems stock overvalued right now?
Smarten Power Systems (NSE:SMARTEN) has a current ROC % of 11.80%. The current ROC % is 11.80% and 215.5% above the Semiconductors industry median of 3.74. Smarten Power Systems' overall GF Score™ is 18/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Smarten Power Systems (NSE:SMARTEN), the current ROC % is 11.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Smarten Power Systems Ltd is engaged into designing and assembling of power back-up and developed solar power products such as Home UPS systems, solar inverters, solar power conditioning units (PCUs), solar charge controllers. It is also engaged in the trading of solar panels and batteries. It sells its products through its distributors within India. Currently, The Company is operating in 23 states and 2 union territories within India and has also established footprint in over 18 countries which includes Middle East, Africa, and South Asia region.
18GF Score
Get the complete analysis for NSE:SMARTEN
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:SMARTEN has been successfully added to your 