Pearl Global Industries (BOM:532808) ROC % : 20.22% (As of Mar. 2024)

View and export this data going back to 2007. Start your Free Trial

What is Pearl 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 %. Pearl Global Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 20.22%.

As of today (2024-06-01), Pearl Global Industries's WACC % is 8.22%. Pearl Global Industries's ROC % is 19.91% (calculated using TTM income statement data). Pearl Global Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Pearl Global Industries ROC % Historical Data

The historical data trend for Pearl 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.

* Premium members only.

Pearl Global Industries ROC % Chart

Pearl Global Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

3.16

4.01

8.95

15.33

19.28

Pearl Global Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															16.77	20.74	21.05	19.10	20.22

Pearl Global Industries ROC % Calculation

Pearl 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 )
=	2436.057 * ( 1 - 11.94% )	/	( (11108.975	+	11148.588)	/ 2 )
=	2145.1917942	/	11128.7815
=	19.28 %

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	))
=	17806.419	-	4084.176	-	( 2613.268	-	max(0, 8168.464	-	11611.72	+	2613.268	))
=	11108.975

	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	))
=	19854.628	-	4935.406	-	( 3770.634	-	max(0, 8831.077	-	12789.395	+	3770.634	))
=	11148.588

Pearl Global Industries'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 )
=	2503.296 * ( 1 - 9.96% )	/	( (0	+	11148.588)	/ 1 )
=	2253.9677184	/	11148.588
=	20.22 %

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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	19854.628	-	4935.406	-	( 3770.634	-	max(0, 8831.077	-	12789.395	+	3770.634	))
=	11148.588

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

Pearl Global Industries (BOM:532808) 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, Pearl Global Industries's WACC % is 8.22%. Pearl Global Industries's ROC % is 19.91% (calculated using TTM income statement data). Pearl Global Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Pearl Global Industries ROC % Related Terms

Thank you for viewing the detailed overview of Pearl Global Industries's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Pearl Global Industries (BOM:532808) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Pearl Global Industries Ltd (BOM:532808) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

PGIL:India

Address

Pearl Tower, Plot No. 51, Sector - 32, Gurgaon, HR, IND, 122001

Website

https://www.pearlglobal.com

Pearl Global Industries Ltd is engaged in the manufacturing, sourcing, distribution, and export of ready-to-wear apparel through its domestic and global facilities and operations. The geographical segments of the company include Hong Kong, Bangladesh, India, and Others. The company earns majority of its revenue outside India. The company's product range comprises of knits, woven and bottoms across men, women, and kids wear segments.

Pearl Global Industries (BOM:532808) Headlines

No Headlines