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Global Offshore Services (BOM:501848) ROIC % : -4.63% (As of Sep. 2024)


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What is Global Offshore Services ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Global Offshore Services's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -4.63%.

As of today (2024-12-12), Global Offshore Services's WACC % is 23.77%. Global Offshore Services's ROIC % is -5.47% (calculated using TTM income statement data). Global Offshore Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Global Offshore Services ROIC % Historical Data

The historical data trend for Global Offshore Services'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.

Global Offshore Services ROIC % Chart

Global Offshore Services Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.05 -3.41 -2.86 -5.74 -6.10

Global Offshore Services Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % 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 1.09 -4.66 -11.03 -4.37 -4.63

Competitive Comparison of Global Offshore Services's ROIC %

For the Marine Shipping subindustry, Global Offshore Services'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.


Global Offshore Services's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Global Offshore Services's ROIC % distribution charts can be found below:

* The bar in red indicates where Global Offshore Services's ROIC % falls into.



Global Offshore Services ROIC % Calculation

Global Offshore Services's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-157.929 * ( 1 - 4.98% )/( (3414.445 + 1502.336)/ 2 )
=-150.0641358/2458.3905
=-6.10 %

where

Invested Capital(A: Mar. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2497.019 - 750.664 - ( 44.216 - max(0, 2224.27 - 556.18+44.216))
=3414.445

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1427.557 - 229.083 - ( 32.308 - max(0, 525.283 - 221.421+32.308))
=1502.336

Global Offshore Services's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-73.512 * ( 1 - -0.78% )/( (0 + 1598.422)/ 1 )
=-74.0853936/1598.422
=-4.63 %

where

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1419.621 - 105.636 - ( 25.238 - max(0, 478.497 - 194.06+25.238))
=1598.422

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Global Offshore Services  (BOM:501848) 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, Global Offshore Services's WACC % is 23.77%. Global Offshore Services's ROIC % is -5.47% (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.


Global Offshore Services ROIC % Related Terms

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Global Offshore Services Business Description

Traded in Other Exchanges
N/A
Address
D.N. Road, 3rd Floor, Prospect Chambers, Fort, Mumbai, MH, IND, 400001
Global Offshore Services Ltd is an Indian firm engaged in providing offshore support services to exploration and production companies. The company's vessels support oil and gas exploration efforts involving: the transport of personnel to rigs/platforms from onshore bases and vice-versa, delivery of cargo/material to rigs/platforms, anchor handling operations, towing of rigs from one location to another, support to offshore/underwater construction projects, the platform supply vessels owned and operated by the company and its subsidiaries are deployed in India, the North Sea, Brazil, and West Africa. The charter hire segment constitutes the majority of the company's revenue.

Global Offshore Services Headlines

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