Cochin Malabar Estates & Industries (BOM:508571) ROIC % : -2.39% (As of Sep. 2024)

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What is Cochin Malabar Estates & Industries ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Cochin Malabar Estates & Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -2.39%.

As of today (2024-12-11), Cochin Malabar Estates & Industries's WACC % is 12.99%. Cochin Malabar Estates & Industries's ROIC % is -2.11% (calculated using TTM income statement data). Cochin Malabar Estates & Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cochin Malabar Estates & Industries ROIC % Historical Data

The historical data trend for Cochin Malabar Estates & Industries's ROIC % 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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Cochin Malabar Estates & Industries ROIC % Chart

Cochin Malabar Estates & Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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-5.17

-5.98

-3.29

-3.28

-2.43

Cochin Malabar Estates & Industries Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															-2.49	-1.50	-0.92	-3.61	-2.39

Competitive Comparison of Cochin Malabar Estates & Industries's ROIC %

For the Farm Products subindustry, Cochin Malabar Estates & Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cochin Malabar Estates & Industries's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Cochin Malabar Estates & Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Cochin Malabar Estates & Industries's ROIC % falls into.

Cochin Malabar Estates & Industries ROIC % Calculation

Cochin Malabar Estates & Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROIC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-1.405 * ( 1 - 0% )	/	( (56.431	+	59.209)	/ 2 )
=	-1.405	/	57.82
=	-2.43 %

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	))
=	11.948	-	0.197	-	( 1.072	-	max(0, 46.197	-	1.517	+	1.072	))
=	56.431

	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	))
=	20.458	-	1.415	-	( 9.104	-	max(0, 49.715	-	9.549	+	9.104	))
=	59.209

Cochin Malabar Estates & Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-1.312 * ( 1 - 0% )	/	( (0	+	54.892)	/ 1 )
=	-1.312	/	54.892
=	-2.39 %

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	))
=	11.786	-	0.045	-	( 0.452	-	max(0, 44.159	-	1.008	+	0.452	))
=	54.892

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

Cochin Malabar Estates & Industries (BOM:508571) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Cochin Malabar Estates & Industries's WACC % is 12.99%. Cochin Malabar Estates & Industries's ROIC % is -2.11% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Cochin Malabar Estates & Industries ROIC % Related Terms

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Cochin Malabar Estates & Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Cochin Malabar Estates & Industries Ltd (BOM:508571) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

21, Strand Road, Kolkata, WB, IND, 700 001

Website

https://www.cochinmalabar.in

Cochin Malabar Estates & Industries Ltd is engaged in rubber and tea plantations in the State of Kerala and Karnataka. The company's product latex is processed into various rubber products including a stabilized concentrated form of latex, smoked sheets, crepes, and crumb/block rubber.

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