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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 %. Abu Dhabi Ship Building PJSC's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.03%.
As of today (2026-07-22), Abu Dhabi Ship Building PJSC's WACC % is 0.00%. Abu Dhabi Ship Building PJSC's ROIC % is 0.00% (calculated using TTM income statement data).
Abu Dhabi Ship Building PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Abu Dhabi Ship Building PJSC (ADX:ADSB) 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, Abu Dhabi Ship Building PJSC's WACC % is 0.00%. Abu Dhabi Ship Building PJSC's ROIC % is 0.00% (calculated using TTM income statement data).
Abu Dhabi Ship Building PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Abu Dhabi Ship Building PJSC ROIC % Related Terms
Abu Dhabi Ship Building PJSC ROIC % Historical 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.
For the Aerospace & Defense subindustry, Abu Dhabi Ship Building PJSC'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.
Abu Dhabi Ship Building PJSC ROIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Abu Dhabi Ship Building PJSC's ROIC % distribution charts can be found below:
* The bar in red indicates where Abu Dhabi Ship Building PJSC's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2023) data.
The tax rate is limited to between 0% and 100%.
* 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.
Abu Dhabi Ship Building PJSC (ADX:ADSB) has a ROIC % of 2.03% as of Dec. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Abu Dhabi Ship Building PJSC and its competitors.
Is Abu Dhabi Ship Building PJSC's ROIC % too high?
Abu Dhabi Ship Building PJSC's current ROIC % is 2.03%. The Aerospace & Defense industry median ROIC % is 4.19. Abu Dhabi Ship Building PJSC's value of 2.03% is 51.6% below this industry median. Overall, Abu Dhabi Ship Building PJSC has a GF Score™ of 5/100, reflecting its overall financial health beyond just this single metric.
How does Abu Dhabi Ship Building PJSC's ROIC % compare to GE and RTX?
Abu Dhabi Ship Building PJSC's ROIC % of 2.03% can be compared against companies in the Aerospace & Defense industry. The industry median ROIC % is 4.19. Abu Dhabi Ship Building PJSC's value of 2.03% is 51.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Aerospace & Defense company?
The median ROIC % among Aerospace & Defense companies is 4.19, based on 355 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abu Dhabi Ship Building PJSC's current ROIC % of 2.03% is 51.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Abu Dhabi Ship Building PJSC and its competitors. For the Aerospace & Defense industry, the median ROIC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abu Dhabi Ship Building PJSC's current ROIC % is 2.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abu Dhabi Ship Building PJSC stock overvalued right now?
Abu Dhabi Ship Building PJSC (ADX:ADSB) has a current ROIC % of 2.03%. The current ROIC % is 2.03% and 51.6% below the Aerospace & Defense industry median of 4.19. Abu Dhabi Ship Building PJSC's overall GF Score™ is 5/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Abu Dhabi Ship Building PJSC (ADX:ADSB), the current ROIC % is 2.03% as of Dec. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Abu Dhabi Ship Building PJSC is a shipbuilder and support services contractor locally and internationally. Its operating segments include New Build and Engineering; Small Boats; Military Repairs and Maintenance; Commercial Repairs and Maintenance and Combat System Integration. It generates maximum revenue from the New Build and Engineering services segment. It provides the design, engineering, research and development, construction, commissioning, test and trials, ILS, upgrades, conversions, and consultancy services for military, commercial, and leisure vessels in any construction material.
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