Visaka Industries (BOM:509055) ROIC % : -0.21% (As of Dec. 2023)

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What is Visaka Industries ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Visaka Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.21%.

As of today (2024-05-14), Visaka Industries's WACC % is 8.11%. Visaka Industries's ROIC % is 1.56% (calculated using TTM income statement data). Visaka Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Visaka Industries ROIC % Historical Data

The historical data trend for Visaka Industries's ROIC % 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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Visaka Industries ROIC % Chart

Visaka Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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9.36

7.83

15.20

14.62

6.12

Visaka Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															3.14	3.19	5.39	-0.10	-0.21

Competitive Comparison of Visaka Industries's ROIC %

For the Building Products & Equipment subindustry, Visaka Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Visaka Industries's ROIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Visaka Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Visaka Industries's ROIC % falls into.

Visaka Industries ROIC % Calculation

Visaka Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	917.443 * ( 1 - 27.17% )	/	( (9628.663	+	12210.315)	/ 2 )
=	668.1737369	/	10919.489
=	6.12 %

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	))
=	11089.673	-	1218.071	-	( 242.939	-	max(0, 3148.665	-	5499.584	+	242.939	))
=	9628.663

	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	))
=	13703.849	-	1209.667	-	( 283.867	-	max(0, 4219.185	-	6368.621	+	283.867	))
=	12210.315

Visaka Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-35.384 * ( 1 - 20.14% )	/	( (13257.652	+	0)	/ 1 )
=	-28.2576624	/	13257.652
=	-0.21 %

where

	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	))
=	14321.684	-	910.039	-	( 153.993	-	max(0, 4656.107	-	6385.204	+	153.993	))
=	13257.652

	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

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Visaka Industries (BOM:509055) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Visaka Industries's WACC % is 8.11%. Visaka Industries's ROIC % is 1.56% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Visaka Industries ROIC % Related Terms

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Visaka Industries (BOM:509055) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Visaka Industries Ltd (BOM:509055) » Definitions » ROIC %

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VISAKAIND:India

Address

S.P. Road, Visaka Towers, 1-8-303/69/3, Secunderabad, TG, IND, 500 003

Website

https://www.visaka.co

Visaka Industries Ltd is a manufacturer of Roofing sheets and Cement sheets. It also manufactures Fiber sheets, Industrial sheets, Fiber cement corrugated sheets, Fiber cement sheets, and Roofing sheets. The company's activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The Building Products division produces asbestos sheets, accessories used mostly as a roofing material, and non-asbestos flat sheets and sandwich panels used as interiors. Its Synthetic Yarn division manufactures yarn out of blends of polyester, viscose, and other materials which go into the weaving of the fabric. It generates maximum revenue from the Building Products segment. Geographically, it derives a majority of its revenue from India.

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