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Aadi Industries (BOM:530027) ROE % : Negative Equity% (As of Mar. 2024)


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What is Aadi Industries ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aadi Industries's annualized net income for the quarter that ended in Mar. 2024 was ₹3.15 Mil. Aadi Industries's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹-66.92 Mil. Therefore, Aadi Industries's annualized ROE % for the quarter that ended in Mar. 2024 was Negative Equity%.

The historical rank and industry rank for Aadi Industries's ROE % or its related term are showing as below:

During the past 13 years, Aadi Industries's highest ROE % was Negative Equity%. The lowest was 0.00%. And the median was Negative Equity%.

BOM:530027's ROE % is not ranked *
in the Chemicals industry.
Industry Median: 5.21
* Ranked among companies with meaningful ROE % only.

Aadi Industries ROE % Historical Data

The historical data trend for Aadi Industries's ROE % 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.

Aadi Industries ROE % Chart

Aadi Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Equity - - - -

Aadi Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % 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 - - - - Negative Equity

Competitive Comparison of Aadi Industries's ROE %

For the Specialty Chemicals subindustry, Aadi Industries's ROE %, along with its competitors' market caps and ROE % 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.


Aadi Industries's ROE % Distribution in the Chemicals Industry

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

* The bar in red indicates where Aadi Industries's ROE % falls into.



Aadi Industries ROE % Calculation

Aadi Industries's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=-0.918/( (-66+-66.918)/ 2 )
=-0.918/-66.459
=N/A %

Aadi Industries's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=3.148/( (0+-66.918)/ 1 )
=3.148/-66.918
=Negative Equity %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


Aadi Industries  (BOM:530027) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=3.148/-66.918
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3.148 / 0)*(0 / 1.885)*(1.885 / -66.918)
=Net Margin %*Asset Turnover*Equity Multiplier
=N/A %*0*N/A
=ROA %*Equity Multiplier
=N/A %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=3.148/-66.918
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3.148 / 3.148) * (3.148 / -1.584) * (-1.584 / 0) * (0 / 1.885) * (1.885 / -66.918)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -1.9874 * N/A % * 0 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Aadi Industries ROE % Related Terms

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


Aadi Industries (BOM:530027) Business Description

Traded in Other Exchanges
N/A
Address
Vallabh Baug Lane, 421, 4th Floor, Kailash Plaza, Near R-Odeon Mall, Ghatkopar (East), Mumbai, MH, IND, 400077
Aadi Industries Ltd is engaged in the business of trading plastic products and plastic granules. The Company deals in plastic raw materials majorly categorized as commodity, engineering and specialty plastics. The Company has an expertise in dealing with Commodity Plastics. Commodity plastics are the major products that account for bulk of the plastics and in turn for petrochemical industry. Commodity plastics comprise of Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC) and Polystyrene.

Aadi Industries (BOM:530027) Headlines

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