State Trading of India (BOM:512531) ROIC % : -0.82% (As of Mar. 2024)

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What is State Trading of 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 %. State Trading of India's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -0.82%.

As of today (2024-06-22), State Trading of India's WACC % is 4.11%. State Trading of India's ROIC % is -0.92% (calculated using TTM income statement data). State Trading of India earns returns that do not match up to its cost of capital. It will destroy value as it grows.

State Trading of India ROIC % Historical Data

The historical data trend for State Trading of 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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State Trading of India ROIC % Chart

State Trading of India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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-3.01

-2.72

-3.87

-1.66

-1.11

State Trading of 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															-1.37	-2.06	-0.74	-0.72	-0.82

Competitive Comparison of State Trading of India's ROIC %

For the Conglomerates subindustry, State Trading of 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.

State Trading of India's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, State Trading of India's ROIC % distribution charts can be found below:

* The bar in red indicates where State Trading of India's ROIC % falls into.

State Trading of India ROIC % Calculation

State Trading of 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 )
=	-470.991 * ( 1 - 0.49% )	/	( (25204.277	+	59071.089)	/ 2 )
=	-468.6831441	/	42137.683
=	-1.11 %

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	))
=	23473.921	-	45292.298	-	( 2223.007	-	max(0, 70496.575	-	23473.921	+	2223.007	))
=	25204.277

	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	))
=	23927.181	-	11188.689	-	( 3804.343	-	max(0, 70259.778	-	23927.181	+	3804.343	))
=	59071.089

State Trading of 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 )
=	-496.3 * ( 1 - 2.08% )	/	( (59489.851	+	59071.089)	/ 2 )
=	-485.97696	/	59280.47
=	-0.82 %

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	))
=	24024.677	-	11188.399	-	( 3800.974	-	max(0, 70678.25	-	24024.677	+	3800.974	))
=	59489.851

	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	))
=	23927.181	-	11188.689	-	( 3804.343	-	max(0, 70259.778	-	23927.181	+	3804.343	))
=	59071.089

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

State Trading of India (BOM:512531) 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, State Trading of India's WACC % is 4.11%. State Trading of India's ROIC % is -0.92% (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.

State Trading of India ROIC % Related Terms

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State Trading of India (BOM:512531) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » State Trading Corp of India Ltd (BOM:512531) » Definitions » ROIC %

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STCINDIA:India

Address

Tolstoy Marg, Jawahar Vyapar Bhawan, New Delhi, IND, 110 001

Website

http://www.stclimited.co.in

State Trading Corp of India Ltd is an India-based company. It has identified its operating segments as Exports, Imports, and Domestic. The company also undertakes import and export of bulk commodities such as rice, wheat, sugar, pulses, edible oils, fertilizers, coal, and bullion, among others; and import of mass consumption items like wheat, sugar, and pulses, among others. Geographically all the business activity is primarily functioned through the region of India and derives the majority of revenue from the imports segment.

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