ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. De Neers Tools's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was 13.92%.
As of today (2024-05-27), De Neers Tools's WACC % is 0.00%. De Neers Tools's ROC % is 0.00% (calculated using TTM income statement data).
De Neers Tools earns returns that do not match up to its cost of capital. It will destroy value as it grows.
De Neers Tools ROC % Historical Data
The historical data trend for De Neers Tools'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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De Neers Tools ROC % Chart
De Neers Tools Annual Data
Trend
Mar20
Mar21
Mar22
ROC %
7.82
8.50
13.92
De Neers Tools Semi-Annual Data
Mar20
Mar21
Mar22
ROC %
7.82
8.50
13.92
De Neers Tools ROC % Calculation
De Neers Tools's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2022 is calculated as:
Note:
The Operating Income data used here is one times the annual (Mar. 2022) 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.
De Neers Tools (NSE:DENEERS) 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, De Neers Tools's WACC % is 0.00%. De Neers Tools's ROC % is 0.00% (calculated using TTM income statement data).
De Neers Tools 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.
De Neers Tools ROC % Related Terms
Thank you for viewing the detailed overview of De Neers Tools's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
De Neers Tools Ltd is a hand tools suppliers in India. The company aims to provide hand tools of the utmost quality that are worth Its customers' money. It continuously works on innovation and research to develop products that can bring a kind of revolution in the hand tool industry. Its products includes Spanners, Wrenches, Pliers, Cutters, Allen keys, Hammers, sockets, Screw Drivers, Tool Kits, Tool Cabinets, Trolleys, etc. It is also specialized in providing Safety Tools like Non-Sparking Tools, Insulated Steel Tools, Non-Sparking Insulated Tools, Stainless Steel Anti-magnetic Tools, and Titanium Tools, with other range of hand tools. The company is predominantly engaged in wholesale trading of hardware & tools which constitutes a single business segment.
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