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Alkem Laboratories (NSE:ALKEM) 5-Year ROIIC % : 11.19% (As of Mar. 2023)


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What is Alkem Laboratories 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. Alkem Laboratories's 5-Year ROIIC % for the quarter that ended in Mar. 2023 was 11.19%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Alkem Laboratories's 5-Year ROIIC % or its related term are showing as below:

NSE:ALKEM's 5-Year ROIIC % is ranked better than
65.26% of 993 companies
in the Drug Manufacturers industry
Industry Median: 3.43 vs NSE:ALKEM: 11.19

Alkem Laboratories 5-Year ROIIC % Historical Data

The historical data trend for Alkem Laboratories's 5-Year ROIIC % 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.

Alkem Laboratories 5-Year ROIIC % Chart

Alkem Laboratories Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.05 22.02 18.03 15.60 11.19

Alkem Laboratories Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 11.19 - - -

Competitive Comparison of Alkem Laboratories's 5-Year ROIIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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.


Alkem Laboratories's 5-Year ROIIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Alkem Laboratories's 5-Year ROIIC % falls into.



Alkem Laboratories 5-Year ROIIC % Calculation

Alkem Laboratories's 5-Year ROIIC % for the quarter that ended in Mar. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 10294.45572 (Mar. 2023) - 6164.88845 (Mar. 2018) )/( 92848.7 (Mar. 2023) - 55928.4 (Mar. 2018) )
=4129.56727/36920.3
=11.19%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Alkem Laboratories  (NSE:ALKEM) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Alkem Laboratories 5-Year ROIIC % Related Terms

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Alkem Laboratories (NSE:ALKEM) Business Description

Traded in Other Exchanges
Address
Senapati Bapat Marg, Alkem House, Devashish Building, Lower Parel, Mumbai, MH, IND, 400 013
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.

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