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HLE Glascoat (BOM:522215) ROIC % : 6.41% (As of Dec. 2024)


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What is HLE Glascoat 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 %. HLE Glascoat's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 6.41%.

As of today (2025-03-15), HLE Glascoat's WACC % is 13.25%. HLE Glascoat's ROIC % is 7.23% (calculated using TTM income statement data). HLE Glascoat earns returns that do not match up to its cost of capital. It will destroy value as it grows.


HLE Glascoat ROIC % Historical Data

The historical data trend for HLE Glascoat'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.

HLE Glascoat ROIC % Chart

HLE Glascoat 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 20.00 23.06 15.99 12.29 7.29

HLE Glascoat Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 5.02 10.08 4.42 7.71 6.41

Competitive Comparison of HLE Glascoat's ROIC %

For the Specialty Industrial Machinery subindustry, HLE Glascoat'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.


HLE Glascoat's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, HLE Glascoat's ROIC % distribution charts can be found below:

* The bar in red indicates where HLE Glascoat's ROIC % falls into.



HLE Glascoat ROIC % Calculation

HLE Glascoat'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 )
=934.083 * ( 1 - 30.32% )/( (7525.272 + 10322.763)/ 2 )
=650.8690344/8924.0175
=7.29 %

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))
=8944.75 - 1392.654 - ( 26.824 - max(0, 4067.314 - 5592.093+26.824))
=7525.272

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))
=12019.569 - 1363.948 - ( 332.858 - max(0, 4873.137 - 6202.702+332.858))
=10322.763

HLE Glascoat's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=730.252 * ( 1 - 9.86% )/( (10261.388 + 0)/ 1 )
=658.2491528/10261.388
=6.41 %

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))
=11843.606 - 1043.487 - ( 538.731 - max(0, 4816.683 - 5769.286+538.731))
=10261.388

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


HLE Glascoat  (BOM:522215) 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, HLE Glascoat's WACC % is 13.25%. HLE Glascoat's ROIC % is 7.23% (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.


HLE Glascoat ROIC % Related Terms

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HLE Glascoat Business Description

Traded in Other Exchanges
Address
Vitthal Udyognagar, H - 106, G.I.D.C. Estate, Phase - IV, Anand, GJ, IND, 388 121
HLE Glascoat Ltd is an Indian company engaged in the operating segments of Filtration, Drying and Other Equipment, Glass Lined Equipment, Heat Transfer Equipment. It offers products like Reactors, Receivers/storage tanks, Dryers, Filters, Columns, Agitators, Valves, Pipes and Fittings, among others. The company generates maximum revenue from Glass Lined Equipment segments. Geographically the group derives revenue from India and Outside India, of which key income is earned within India.

HLE Glascoat Headlines

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