Gourmet Gateway India (BOM:506134) ROIC % : 0.90% (As of Mar. 2024)

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What is Gourmet Gateway India 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 %. Gourmet Gateway India's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 0.90%.

As of today (2024-06-18), Gourmet Gateway India's WACC % is 7.74%. Gourmet Gateway India's ROIC % is 2.36% (calculated using TTM income statement data). Gourmet Gateway India earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gourmet Gateway India ROIC % Historical Data

The historical data trend for Gourmet Gateway India'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.

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Gourmet Gateway India ROIC % Chart

Gourmet Gateway India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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2.57

2.82

-10.66

3.99

2.30

Gourmet Gateway India Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															5.67	2.42	1.96	3.74	0.90

Competitive Comparison of Gourmet Gateway India's ROIC %

For the Capital Markets subindustry, Gourmet Gateway India'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.

Gourmet Gateway India's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Gourmet Gateway India's ROIC % distribution charts can be found below:

* The bar in red indicates where Gourmet Gateway India's ROIC % falls into.

Gourmet Gateway India ROIC % Calculation

Gourmet Gateway India'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 )
=	57.4 * ( 1 - 25.18% )	/	( (1889.8	+	1837.708)	/ 2 )
=	42.94668	/	1863.754
=	2.30 %

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	))
=	1792.491	-	233.242	-	( 68.175	-	max(0, 610.46	-	279.909	+	68.175	))
=	1889.8

	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	))
=	1774.956	-	213.663	-	( 78.49	-	max(0, 594.243	-	317.828	+	78.49	))
=	1837.708

Gourmet Gateway India's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	18.112 * ( 1 - 9.03% )	/	( (0	+	1837.708)	/ 1 )
=	16.4764864	/	1837.708
=	0.90 %

where

	Invested Capital		(Q: Dec. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: 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	))
=	1774.956	-	213.663	-	( 78.49	-	max(0, 594.243	-	317.828	+	78.49	))
=	1837.708

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

Gourmet Gateway India (BOM:506134) 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, Gourmet Gateway India's WACC % is 7.74%. Gourmet Gateway India's ROIC % is 2.36% (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.

Gourmet Gateway India ROIC % Related Terms

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Gourmet Gateway India (BOM:506134) Business Description

Industry

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Address

Senapati Bapat Marg, 1104, A Wing, 11th Floor, Naman Midtown, Prabhadevi, Mumbai, MH, IND, 400013

Website

https://www.intellivatecapitalventures.in

Intellivate Capital Ventures Ltd provides advisory, consultancy, investment, and share trading services. All the operations of the firm function through India. The company provides integrated solutions to clients, including managing crucial aspects like Merchant Banking, which includes corporate finance, working capital finance, project finance, and financial restructuring to corporate. It is mainly engaged in providing financial advisory and consultancy services and treasury operations by providing funding solutions to clients, both in the form of Debt and Equity and investment activities.

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