In some time of research work found that interloop limited company have higher return on capital (ROC), return on assets (ROA), and return on equity (ROE) generating company in all over textile composite sector in Pakistan. In 2024 the ROC of the Interloop Limited is 26.62% ROA is 10.39% & ROE is 29.46%, 2nd is Kohinoor Textile Mills Limited 15.01% ROA 4.24% & ROE 7.52% , Mehmood Textile Mills Limited is 14.80% ROA is 0.45% & ROE is 1.43%, 4th is Gul Ahmed Textile Mills Limited is 11.40% ROA is 3.4% & ROE is 10.56 and the final Redco Textiles Limited is 7.04% ROA is 5.58% & ROE is 21.14%. Surpassing the number 3rd because of the company Kohinoor Mills Limited which also belong to the 2nd number company list. There are some reasons which I find out how interloop have higher generating capital return
Reasons Of Interloop Higher ROC, ROA and ROE ?
Higher Operating Profit : Company have higher return when it generate higher operating profit. Interloop have one of those company in previous 5 years they increase single digit to double digit operating profit in billion rupees almost 8.5 time increase in during 2020 to 2024 . Relatively other company have struggle to generate those kind of operational efficiency.
Debt Management : Company also looking their debt management annually. Which effects the capital returns .
Cash Management : Calculating the ROC its necessary to substract the amount of cash because of reflecting pure capital amount. When company have high cash it decreasing the amount of capital and ultimately the high return.
Business : Interloop Limited have highly export oriented business in Pakistan. Their 90% products sale in international market. It contain big giants of Europe, USA, UK etc like H&M, Nike, Levis etc. Interloop have advantages of best hosiery business model in Pakistan.
Companies Data :-
| Companies | ROC | ROA | ROE |
| Interloop Limited | 26.62% | 10.39% | 29.46% |
| Kohinoor Textile Mills Limited | 15.01% | 4.24% | 7.52% |
| Mehmood Textile Mills Limited | 14.80% | 0.45% | 1.43% |
| Gul Ahmed Textile Mills Limited | 11.40% | 3.40% | 10.56% |
| Redco Textiles Limited | 7.04% | 5.58% | 21.14% |
Is Redco Textiles Limited Have Higher ROA Compared To Other?
Yes Redco Textile have high 2nd largest Return On Assets of 5.58% as well as Return on Equity of 21.14% in the textile composite sector after interloop with a strong business model of making and selling yarn internationally as well as locally. The reason behind Redco Textile Limited have increasing operating profit almost 6x in 5 years, high cash generating, lower equity and debt resulting higher returns.
