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Tatva Chintan Pharma Chem (NSE:TATVA) ROC % : -0.04% (As of Dec. 2024)


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What is Tatva Chintan Pharma Chem 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 %. Tatva Chintan Pharma Chem's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -0.04%.

As of today (2025-03-14), Tatva Chintan Pharma Chem's WACC % is 11.28%. Tatva Chintan Pharma Chem's ROC % is 1.63% (calculated using TTM income statement data). Tatva Chintan Pharma Chem earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Tatva Chintan Pharma Chem ROC % Historical Data

The historical data trend for Tatva Chintan Pharma Chem'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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Tatva Chintan Pharma Chem ROC % Chart

Tatva Chintan Pharma Chem Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial 24.40 22.36 23.43 10.09 4.52

Tatva Chintan Pharma Chem Quarterly Data
Mar19 Mar20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.72 4.31 2.56 -0.42 -0.04

Tatva Chintan Pharma Chem ROC % Calculation

Tatva Chintan Pharma Chem'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 )
=441.21 * ( 1 - 30.33% )/( (6496.35 + 7113.01)/ 2 )
=307.391007/6804.68
=4.52 %

where

Tatva Chintan Pharma Chem'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 )
=5.48 * ( 1 - 158.72% )/( (7649.79 + 0)/ 1 )
=-3.217856/7649.79
=-0.04 %

where

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


Tatva Chintan Pharma Chem  (NSE:TATVA) 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, Tatva Chintan Pharma Chem's WACC % is 11.28%. Tatva Chintan Pharma Chem's ROC % is 1.63% (calculated using TTM income statement data). Tatva Chintan Pharma Chem 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.


Tatva Chintan Pharma Chem ROC % Related Terms

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Tatva Chintan Pharma Chem Business Description

Traded in Other Exchanges
Address
Plot No. 353, Makarpura GIDC, Vadodara, GJ, IND, 390010
Tatva Chintan Pharma Chem Ltd is a specialty chemicals manufacturing company engaged in the manufacturing and selling of specialty chemicals, Pharma and Agro intermediates, Quaternary Compounds, and Quats. The company's product portfolio includes structure-directing agents, phase transfer catalysts, electrolyte salts for supercapacitor batteries, pharmaceutical and agrochemical intermediates and other specialty chemicals. The company sells its products in domestic as well as overseas markets, with the majority of revenue coming from overseas markets.

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