Goblin India (BOM:542850) ROC % : 4.12% (As of Sep. 2023)

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What is Goblin India 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 %. Goblin India's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 4.12%.

As of today (2024-05-24), Goblin India's WACC % is 15.56%. Goblin India's ROC % is 5.25% (calculated using TTM income statement data). Goblin India earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Goblin India ROC % Historical Data

The historical data trend for Goblin India'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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Goblin India ROC % Chart

Goblin India Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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19.34

14.31

0.91

-3.13

2.90

Goblin India Semi-Annual Data
	Mar17	Mar18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial							0.89	-7.24	-0.97	6.49	4.12

Goblin India ROC % Calculation

Goblin India's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	17.3 * ( 1 - 6.06% )	/	( (524.934	+	596.554)	/ 2 )
=	16.25162	/	560.744
=	2.90 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	586.69	-	59.434	-	( 2.322	-	max(0, 128.414	-	541.686	+	2.322	))
=	524.934

	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	))
=	728.316	-	129.759	-	( 2.003	-	max(0, 215.141	-	655.584	+	2.003	))
=	596.554

Goblin India's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	25.752 * ( 1 - 0% )	/	( (596.554	+	653.082)	/ 2 )
=	25.752	/	624.818
=	4.12 %

where

	Invested Capital		(Q: 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	))
=	728.316	-	129.759	-	( 2.003	-	max(0, 215.141	-	655.584	+	2.003	))
=	596.554

	Invested Capital		(Q: Sep. 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	))
=	763.703	-	108.737	-	( 1.884	-	max(0, 182.141	-	691.006	+	1.884	))
=	653.082

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Goblin India (BOM:542850) 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, Goblin India's WACC % is 15.56%. Goblin India's ROC % is 5.25% (calculated using TTM income statement data). Goblin India 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.

Goblin India ROC % Related Terms

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Goblin India (BOM:542850) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Goblin India Ltd (BOM:542850) » Definitions » ROC %

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Address

Stadium Commercial Road, Camex House, 1st Floor, Navrangpura, Ahmedabad, GJ, IND, 380009

Website

http://www.goblinindia.com

Goblin India Ltd is engaged in manufacturing of traveling gear solutions. The company offers a variety of Travelling Gears including Hard Luggage, Soft Luggage and other accessories like wallets, purses, travel neck pillow. Geographically, operating in India. The company is operating only one business segment of trading in luggage bags, travel accessories and corporate gifts.

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