Padmanabh Industries (BOM:526905) ROIC % : -35.09% (As of Dec. 2023)

View and export this data going back to 2001. Start your Free Trial

What is Padmanabh 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 %. Padmanabh Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -35.09%.

As of today (2024-05-25), Padmanabh Industries's WACC % is 5.08%. Padmanabh Industries's ROIC % is -5.91% (calculated using TTM income statement data). Padmanabh Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Padmanabh Industries ROIC % Historical Data

The historical data trend for Padmanabh 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.

* Premium members only.

Padmanabh Industries ROIC % Chart

Padmanabh Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

Get a 7-Day Free Trial

-14.15

17.28

-8.99

-26.76

-12.73

Padmanabh 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															-10.88	24.23	-5.93	-5.93	-35.09

Competitive Comparison of Padmanabh Industries's ROIC %

For the Specialty Chemicals subindustry, Padmanabh 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.

Padmanabh Industries's ROIC % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Padmanabh Industries's ROIC % distribution charts can be found below:

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

Padmanabh Industries ROIC % Calculation

Padmanabh 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 )
=	-1.29 * ( 1 - 0% )	/	( (14.193	+	6.075)	/ 2 )
=	-1.29	/	10.134
=	-12.73 %

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	))
=	16.159	-	9.888	-	( 0.573	-	max(0, 10.097	-	2.175	+	0.573	))
=	14.193

	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	))
=	15.344	-	9.088	-	( 0.181	-	max(0, 9.296	-	11.625	+	0.181	))
=	6.075

Padmanabh 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 )
=	-2.132 * ( 1 - 0% )	/	( (6.075	+	0)	/ 1 )
=	-2.132	/	6.075
=	-35.09 %

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	))
=	15.344	-	9.088	-	( 0.181	-	max(0, 9.476	-	11.825	+	0.181	))
=	6.075

	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.

Padmanabh Industries (BOM:526905) 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, Padmanabh Industries's WACC % is 5.08%. Padmanabh Industries's ROIC % is -5.91% (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.

Padmanabh Industries ROIC % Related Terms

Thank you for viewing the detailed overview of Padmanabh Industries's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Padmanabh Industries (BOM:526905) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Padmanabh Industries Ltd (BOM:526905) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ashram Road, 203 Abhishek Complex, Mamta Park Society B/H, NAV Gujarat College, Ambawadi, Ahmedabad, GJ, IND, 380014

Website

https://www.padmanabhindustries.in

Padmanabh Industries Ltd is engaged in the business of Trading Activities. It produces manufacturing, refining, manipulating, using, buying, importing, or otherwise acquiring using, selling, distributing, exporting deals in, and disposing of dyes and chemicals (synthetic or non-synthetic), coal-tar, dyes, dyes intermediates, and dyes of all other types and description pharmaceutical surface active agents. It also engaged in the business of Builders, Masoners, and General Construction and Contractors and carries on the business of the proprietors of lands, flats maisonettes, dwelling houses, shops, offices, industrial estates, lessees of lands, flats, and other immoveable properties and for these purposes to purchase, take on lease.

Padmanabh Industries (BOM:526905) Headlines

No Headlines