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Steel Strips Infrastructures (BOM:513173) ROIC %

: -0.82% (As of Dec. 2023)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Steel Strips Infrastructures's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.82%.

As of today (2024-04-16), Steel Strips Infrastructures's WACC % is 20.95%. Steel Strips Infrastructures's ROIC % is -1.47% (calculated using TTM income statement data). Steel Strips Infrastructures earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Steel Strips Infrastructures ROIC % Historical Data

The historical data trend for Steel Strips Infrastructures'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.

Steel Strips Infrastructures Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.58 -8.71 -10.23 -8.44 -6.64

Steel Strips Infrastructures Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only -1.23 -6.43 -7.35 -0.92 -0.82

Competitive Comparison

For the Real Estate Services subindustry, Steel Strips Infrastructures'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.


Steel Strips Infrastructures ROIC % Distribution

For the Real Estate industry and Real Estate sector, Steel Strips Infrastructures's ROIC % distribution charts can be found below:

* The bar in red indicates where Steel Strips Infrastructures's ROIC % falls into.



Steel Strips Infrastructures ROIC % Calculation

Steel Strips Infrastructures'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 )
=-10.075 * ( 1 - 0% )/( (151.04 + 152.196)/ 2 )
=-10.075/151.618
=-6.64 %

where

Steel Strips Infrastructures'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 )
=-10.356 * ( 1 - 0% )/( (1259.128 + 0)/ 1 )
=-10.356/1259.128
=-0.82 %

where

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


Steel Strips Infrastructures  (BOM:513173) 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, Steel Strips Infrastructures's WACC % is 20.95%. Steel Strips Infrastructures's ROIC % is -1.47% (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.


Steel Strips Infrastructures ROIC % Related Terms

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Steel Strips Infrastructures (BOM:513173) Business Description

Traded in Other Exchanges
N/A
Address
Madhya Marg, Sector 26, SCO 49-50, Chandigarh, PB, IND, 160 019
Steel Strips Infrastructures Ltd is an India-based company engaged in the real estate business. It earns its revenues through Rental Income of commercial property, Hoarding and publicity receipts, Receipts from Parking Areas, Interest income, Profit on the sale of Land and miscellaneous income.

Steel Strips Infrastructures (BOM:513173) Headlines

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