Tembo Global Industries (NSE:TEMBO) ROC % : 13.31% (As of Sep. 2024)

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What is Tembo Global Industries 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 %. Tembo Global Industries's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 13.31%.

As of today (2025-03-25), Tembo Global Industries's WACC % is 12.30%. Tembo Global Industries's ROC % is 7.46% (calculated using TTM income statement data). Tembo Global Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tembo Global Industries ROC % Historical Data

The historical data trend for Tembo Global Industries'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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Tembo Global Industries ROC % Chart

Tembo Global Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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10.20

8.27

5.82

9.61

11.45

Tembo Global Industries Quarterly Data
	Mar15	Mar16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Jun21	Mar22	Jun22	Mar23	Jun23	Sep23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															11.14	-	-	19.09	13.31

Tembo Global Industries ROC % Calculation

Tembo Global Industries'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 )
=	162.972 * ( 1 - 24.81% )	/	( (934.106	+	1206.962)	/ 2 )
=	122.5386468	/	1070.534
=	11.45 %

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	))
=	1098.714	-	159.843	-	( 4.765	-	max(0, 631.218	-	772.283	+	4.765	))
=	934.106

	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	))
=	1629.892	-	418.994	-	( 3.936	-	max(0, 870.803	-	1221.281	+	3.936	))
=	1206.962

Tembo Global Industries's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	563.04 * ( 1 - 25.24% )	/	( (0	+	3161.35)	/ 1 )
=	420.928704	/	3161.35
=	13.31 %

where

	Invested Capital		(Q: Jun. 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: 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	))
=	3660.422	-	481.185	-	( 17.887	-	max(0, 2511.13	-	2837.626	+	17.887	))
=	3161.35

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

Tembo Global Industries (NSE:TEMBO) 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, Tembo Global Industries's WACC % is 12.30%. Tembo Global Industries's ROC % is 7.46% (calculated using TTM income statement data). Tembo Global Industries 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.

Tembo Global Industries ROC % Related Terms

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Tembo Global Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Tembo Global Industries Ltd (NSE:TEMBO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

S Central Road, Plot No. PAP-D - 146/147, TTC Industrial Estate, Opposite Balmer Lawrie Van Leer Co., MIDC, Turbhe, Sanpada Road, Navi Mumbai, MH, IND, 400705

Website

https://www.tembo.in

Tembo Global Industries Ltd manufactures and fabricates steel products for its application in Pipe Support Systems, HVAC Systems, Anti-vibration systems and Equipment for Industrial, Commercial, Utility, and OEM Installations. It also manufactures metal and base metal products like G. I. nuts, various types of bolts, clamps, hangers, bathroom pipes, fittings, bathroom accessories and sanitary wares. The company operates in two business segment viz, Manufacturing of Engineering Products and Trading of Fabric and Textile Products. The majority of revenue from operations is derived from the domestic market.

Tembo Global Industries Headlines

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