ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bizotic Commercial's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -4.27%.
As of today (2024-06-14), Bizotic Commercial's WACC % is 13.59%. Bizotic Commercial's ROIC % is 0.18% (calculated using TTM income statement data).
Bizotic Commercial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bizotic Commercial ROIC % Historical Data
The historical data trend for Bizotic Commercial'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.
Competitive Comparison of Bizotic Commercial's ROIC %
For the Apparel Manufacturing subindustry, Bizotic Commercial'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.
Bizotic Commercial's ROIC % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Bizotic Commercial's ROIC % distribution charts can be found below:
* The bar in red indicates where Bizotic Commercial's ROIC % falls into.
Bizotic Commercial ROIC % Calculation
Bizotic Commercial's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (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.
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, Bizotic Commercial's WACC % is 13.59%. Bizotic Commercial's ROIC % is 0.18% (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.
Bizotic Commercial ROIC % Related Terms
Thank you for viewing the detailed overview of Bizotic Commercial's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Bizotic Commercial (BOM:543926) Business Description
Bizotic Commercial Ltd manufactures, designs, and markets readymade garments, offering a diverse range of men's Formal Wear, Casual Wear, Party Wear, Fit Wear, Sports Wear, Comfort Wear, Ethnic Wear, and Winter Wear. It serves its customers through the channels of retail stores and e-commerce. its garment manufacturing process includes cutting, stitching, sewing, finishing, inspection, and packing. The company outsources the entire garments manufacturing on a job work basis from third-party contractors from time to time and provides the technical specifications such as designs, pattern, quality, fabric, etc. to them who, based on the specifications, procure the requisite raw materials at their costs and begin the manufacturing process.
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