Sun Pharma Advanced Research Co (NSE:SPARC) ROC % : 0.00% (As of Dec. 2024)

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What is Sun Pharma Advanced Research Co 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 %. Sun Pharma Advanced Research Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 0.00%.

As of today (2025-04-02), Sun Pharma Advanced Research Co's WACC % is 17.86%. Sun Pharma Advanced Research Co's ROC % is -126.35% (calculated using TTM income statement data). Sun Pharma Advanced Research Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sun Pharma Advanced Research Co ROC % Historical Data

The historical data trend for Sun Pharma Advanced Research Co'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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Sun Pharma Advanced Research Co ROC % Chart

Sun Pharma Advanced Research Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-145.52

-50.53

-65.97

-64.72

-111.93

Sun Pharma Advanced Research Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-157.01	-124.24	-113.39	-	-

Sun Pharma Advanced Research Co ROC % Calculation

Sun Pharma Advanced Research Co'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 )
=	-4115.041 * ( 1 - -0.1% )	/	( (3941.548	+	3418.511)	/ 2 )
=	-4119.156041	/	3680.0295
=	-111.93 %

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	))
=	8301.261	-	1599.543	-	( 4024.729	-	max(0, 1789.457	-	4549.627	+	4024.729	))
=	3941.548

	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	))
=	5150.422	-	1688.633	-	( 1571.308	-	max(0, 2650.578	-	2693.856	+	1571.308	))
=	3418.511

Sun Pharma Advanced Research Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-3073.2 * ( 1 - -0.09% )	/	( (0	+	0)	/ 1 )
=	-3075.96588	/	0
=	%

where

	Invested Capital		(Q: Sep. 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

	Invested Capital		(Q: Dec. 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 (Dec. 2024) data.

Sun Pharma Advanced Research Co (NSE:SPARC) 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, Sun Pharma Advanced Research Co's WACC % is 17.86%. Sun Pharma Advanced Research Co's ROC % is -126.35% (calculated using TTM income statement data). Sun Pharma Advanced Research Co 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.

Sun Pharma Advanced Research Co ROC % Related Terms

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Sun Pharma Advanced Research Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Sun Pharma Advanced Research Co Ltd (NSE:SPARC) » Definitions » ROC %

Traded in Other Exchanges

532872:India

Address

Off Mahakali Caves Road, 17-B, Mahal Industrial Estate, Andheri (East), Mumbai, MH, IND, 400093

Website

https://www.sparc.life

Sun Pharma Advanced Research Co Ltd is an Indian specialty and generic drug manufacturing company. The company has identified pharmaceuticals research and development as its only reportable segment. The company is focused on drug discovery in focused therapy areas such as cancer and anti-inflammatory treatments. The company considers merger and acquisition investment as a potential component of its operational growth plan for expanding its research, development, manufacturing, and marketing capabilities. It derives maximum revenue from India and also has its presence in othe4r countries.

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