ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Salasar Techno Engineering's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 11.44%.
As of today (2024-06-08), Salasar Techno Engineering's WACC % is 6.40%. Salasar Techno Engineering's ROC % is 10.28% (calculated using TTM income statement data).
Salasar Techno Engineering 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.
* 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2024) 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.
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, Salasar Techno Engineering's WACC % is 6.40%. Salasar Techno Engineering's ROC % is 10.28% (calculated using TTM income statement data).
Salasar Techno Engineering 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.
Salasar Techno Engineering ROC % Related Terms
Thank you for viewing the detailed overview of Salasar Techno Engineering's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Salasar Techno Engineering (NSE:SALASAR) Business Description
Salasar Techno Engineering Ltd is engaged in the manufacturing of galvanized M.S. steel structures and related activities. It is engaged in the manufacturing and fabrication of steel structures for Telecom Towers, Transmission Towers, Utilities Poles, High Mast Poles, Stadium Lighting Poles, Flag Poles, and Smart City Poles Substations Structures, Railway Electrification (OHE), and Solar Module Mounting Structures. The Firm has two reportable segments namely, Steel structure, which derives majority of revenue and comprises manufacturing and sale of Galvanized and Non-galvanized Steel Structures including Telecom Towers, Transmission Line Towers, and Solar Panels; and EPC projects, which comprise survey, supply of materials, design, erection, testing and commissioning on a trunkey basis.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NSE:SALASAR has been successfully added to your 