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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 %. Arur Footwear's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.14%.
As of today (2026-07-16), Arur Footwear's WACC % is 4.38%. Arur Footwear's ROIC % is -3.51% (calculated using TTM income statement data).
Arur Footwear earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Arur Footwear (BOM:513515) 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, Arur Footwear's WACC % is 4.38%. Arur Footwear's ROIC % is -3.51% (calculated using TTM income statement data).
Arur Footwear 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.
Arur Footwear ROIC % Related Terms
Arur Footwear ROIC % Historical Data
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The historical data trend for Arur Footwear'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.
For the Footwear & Accessories subindustry, Arur Footwear'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.
Arur Footwear ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arur Footwear's ROIC % distribution charts can be found below:
* The bar in red indicates where Arur Footwear's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Arur Footwear (BOM:513515) has a ROIC % of 11.14% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Arur Footwear and its competitors.
Is Arur Footwear's ROIC % too high?
Arur Footwear's current ROIC % is 11.14%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Arur Footwear's value of 11.14% is 282.8% above this industry median.
How does Arur Footwear's ROIC % compare to NKE and DECK?
Arur Footwear's ROIC % of 11.14% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Arur Footwear's value of 11.14% is 282.8% above 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 a Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,045 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. Arur Footwear's current ROIC % of 11.14% is 282.8% above 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 Arur Footwear and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arur Footwear's current ROIC % is 11.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arur Footwear stock overvalued right now?
Arur Footwear (BOM:513515) has a current ROIC % of 11.14%. The stock's GF Value™ is ₹0.03, compared to a current price of ₹50.08 — trading 166834.2% above its estimated fair value. The current ROIC % is 11.14% and 282.8% above the Manufacturing - Apparel & Accessories industry median of 2.91. 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 Arur Footwear (BOM:513515), the current ROIC % is 11.14% as of Mar. 2026. 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.
Arur Footwear Ltd Formerly S R Industries Ltd is a footwear manufacturer. It is engaged in producing products like cemented sports shoes, flip flops, lifestyle footwear, sports sandals, and sports shoes for the sports footwear market industry. The firm has operations in Punjab and Himachal Pradesh, India. Manufacturing facilities include: Rubber Outsole Moulding, EVA Sheet, Cutting and preparation, Stitching, Assembly line for shoes. It produces goods for various companies such as Bata, Fila, etc.
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