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Organic Recycling Systems (BOM:543997) ROE % : 7.82% (As of Sep. 2023)


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What is Organic Recycling Systems ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Organic Recycling Systems's annualized net income for the quarter that ended in Sep. 2023 was ₹40.3 Mil. Organic Recycling Systems's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was ₹515.1 Mil. Therefore, Organic Recycling Systems's annualized ROE % for the quarter that ended in Sep. 2023 was 7.82%.

The historical rank and industry rank for Organic Recycling Systems's ROE % or its related term are showing as below:

BOM:543997' s ROE % Range Over the Past 10 Years
Min: -125.53   Med: -39.18   Max: 21.76
Current: 3.91

During the past 4 years, Organic Recycling Systems's highest ROE % was 21.76%. The lowest was -125.53%. And the median was -39.18%.

BOM:543997's ROE % is ranked worse than
54.24% of 236 companies
in the Waste Management industry
Industry Median: 5.43 vs BOM:543997: 3.91

Organic Recycling Systems ROE % Historical Data

The historical data trend for Organic Recycling Systems'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.

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Organic Recycling Systems ROE % Chart

Organic Recycling Systems Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROE %
-125.53 -28.65 -49.71 21.76

Organic Recycling Systems Semi-Annual Data
Mar20 Mar21 Mar22 Mar23 Sep23
ROE % - - - - 7.82

Competitive Comparison of Organic Recycling Systems's ROE %

For the Waste Management subindustry, Organic Recycling Systems'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.


Organic Recycling Systems's ROE % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Organic Recycling Systems's ROE % distribution charts can be found below:

* The bar in red indicates where Organic Recycling Systems's ROE % falls into.



Organic Recycling Systems ROE % Calculation

Organic Recycling Systems's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=36.538/( (80.886+255.007)/ 2 )
=36.538/167.9465
=21.76 %

Organic Recycling Systems's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=40.296/( (255.007+775.195)/ 2 )
=40.296/515.101
=7.82 %

* 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 two times the semi-annual (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Organic Recycling Systems  (BOM:543997) 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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=40.296/515.101
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(40.296 / 251.478)*(251.478 / 1450.808)*(1450.808 / 515.101)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.02 %*0.1733*2.8166
=ROA %*Equity Multiplier
=2.78 %*2.8166
=7.82 %

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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=40.296/515.101
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (40.296 / 41.19) * (41.19 / 60.092) * (60.092 / 251.478) * (251.478 / 1450.808) * (1450.808 / 515.101)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9783 * 0.6854 * 23.9 % * 0.1733 * 2.8166
=7.82 %

Note: The net income data used here is two times the semi-annual (Sep. 2023) net income data. The Revenue data used here is two times the semi-annual (Sep. 2023) 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.


Organic Recycling Systems ROE % Related Terms

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Organic Recycling Systems (BOM:543997) Business Description

Traded in Other Exchanges
N/A
Address
Plot No. 9, Sector-17, Office No. 1003, 10th Floor, The Affaires, Sanpada, Navi Mumbai, MH, IND, 400705
Organic Recycling Systems Ltd is an engineering company focused on environmental solutions and provides waste management solutions across waste types and across the value chain. The company has been a forerunner in providing sustainable waste management solutions in India. It primarily focuses on developing robust, cost-effective & environment-friendly technologies that are simple to operate. It has proven technology and capability of successfully running one of India's first Waste to Energy (WTE) plants developed on anaerobic bio methanation technology. It has also set up an MSW processing and disposal plant in Solapur, Maharashtra to convert Municipal Solid Waste (MSW) into electricity and compost.

Organic Recycling Systems (BOM:543997) Headlines

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