NVL (Novelis) ROC %: 9.28% (As of Mar. 2024)

What is Novelis ROC %?

Novelis NVL ROC % is 9.28% as of Mar. 2024.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Novelis's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 9.28%.

As of today (2026-06-26), Novelis's WACC % is 0.00%. Novelis's ROC % is 0.00% (calculated using TTM income statement data). Novelis earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Novelis (NYSE:NVL) 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, Novelis's WACC % is 0.00%. Novelis's ROC % is 0.00% (calculated using TTM income statement data). Novelis 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.

Novelis ROC % Related Terms

Novelis ROC % Historical Data

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The historical data trend for Novelis'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.

Novelis ROC % Chart

Novelis Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar23

Mar24

ROC %

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6.71

6.25

7.15

11.83

8.55

Novelis Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															13.27	8.17	9.25	7.90	9.28

Novelis ROC % Calculation

Novelis'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 )
=	1137 * ( 1 - 26.65% )	/	( (9384	+	10126)	/ 2 )
=	833.9895	/	9755
=	8.55 %

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	))
=	14364	-	3482	-	( 1498	-	max(0, 4899	-	6460	+	1498	))
=	9384

	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	))
=	14628	-	3394	-	( 1309	-	max(0, 4835	-	5943	+	1309	))
=	10126

Novelis's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	1256 * ( 1 - 26.22% )	/	( (9843	+	10126)	/ 2 )
=	926.6768	/	9984.5
=	9.28 %

where

	Invested Capital		(Q: Dec. 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	))
=	14331	-	3701	-	( 787	-	max(0, 4457	-	5856	+	787	))
=	9843

	Invested Capital		(Q: 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	))
=	14628	-	3394	-	( 1309	-	max(0, 4835	-	5943	+	1309	))
=	10126

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of 9.28% mean?

Novelis (NVL) has a ROC % of 9.28% as of Mar. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Novelis and its competitors.

Is Novelis' ROC % too high?

Novelis' current ROC % is 9.28%.

How does Novelis' ROC % compare to ?

Novelis' ROC % of 9.28% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?

A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Novelis and its competitors. Novelis's current ROC % is 9.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Novelis stock overvalued right now?

Novelis (NVL) has a current ROC % of 9.28%. The current ROC % is 9.28%. 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 Novelis (NVL), the current ROC % is 9.28% as of Mar. 2024. 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.

Novelis Business Description

Industry Basic Materials Metals & Mining

Comparable Companies

Address 3560 Lenox Road, Suite 2000, Atlanta, GA, USA, 30326

Website http://www.novelis.com

Novelis Inc is aluminum rolled product producer, with operations on four continents. It acquires and recycles aluminum and processes it into semifinished coils in various tempers, gauges, and widths. Company has four geographical segment North America, Europe, Asia, and South America. Each segment manufactures aluminum sheet and light gauge products and recycles aluminum, while Asia and Europe segments also produce aerospace and industries.