D S Kulkarni Developers (BOM:523890) ROIC % : -0.14% (As of Dec. 2023)

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What is D S Kulkarni Developers 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 %. D S Kulkarni Developers's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.14%.

As of today (2024-05-05), D S Kulkarni Developers's WACC % is 0.56%. D S Kulkarni Developers's ROIC % is -0.20% (calculated using TTM income statement data). D S Kulkarni Developers earns returns that do not match up to its cost of capital. It will destroy value as it grows.

D S Kulkarni Developers ROIC % Historical Data

The historical data trend for D S Kulkarni Developers'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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D S Kulkarni Developers ROIC % Chart

D S Kulkarni Developers Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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-0.37

-0.33

-0.19

-0.16

-0.18

D S Kulkarni Developers Quarterly Data
	Mar14	Jun14	Sep14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-0.02	-0.66	-0.01	-0.01	-0.14

Competitive Comparison of D S Kulkarni Developers's ROIC %

For the Real Estate - Development subindustry, D S Kulkarni Developers'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.

D S Kulkarni Developers's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, D S Kulkarni Developers's ROIC % distribution charts can be found below:

* The bar in red indicates where D S Kulkarni Developers's ROIC % falls into.

D S Kulkarni Developers ROIC % Calculation

D S Kulkarni Developers's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-30.661 * ( 1 - 0% )	/	( (17063.789	+	16594.164)	/ 2 )
=	-30.661	/	16828.9765
=	-0.18 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	19373.92	-	2305.576	-	( 4.555	-	max(0, 9253.73	-	18217.214	+	4.555	))
=	17063.789

	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	))
=	18919.06	-	2318.763	-	( 6.133	-	max(0, 9285.608	-	18218.048	+	6.133	))
=	16594.164

D S Kulkarni Developers's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-25.268 * ( 1 - 0% )	/	( (18371.937	+	0)	/ 1 )
=	-25.268	/	18371.937
=	-0.14 %

where

	Invested Capital		(Q: Sep. 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	))
=	19034.328	-	542.859	-	( 119.532	-	max(0, 9258.298	-	18331.737	+	119.532	))
=	18371.937

	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

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

D S Kulkarni Developers (BOM:523890) 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, D S Kulkarni Developers's WACC % is 0.56%. D S Kulkarni Developers's ROIC % is -0.20% (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.

D S Kulkarni Developers ROIC % Related Terms

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D S Kulkarni Developers (BOM:523890) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » D S Kulkarni Developers Ltd (BOM:523890) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

J. M. Road, DSK House, 1187/60, Shivajinagar, Pune, MH, IND, 411005

Website

https://www.dskcirp.com

D S Kulkarni Developers Ltd is engaged in the business of real estate development in India. It develops and constructs residential and commercial properties. The company holds an interest in projects such as DSK Sundarban Commercial, DSK Vishwa Commercial, DSK Hariyali, DSK Kasturi B, DSK Vidyanagari Phase II, DSK Durgamata and others. Geographically, the business presence of the firm is seen across the Indian and international markets of which the Indian region accounts for the majority of revenue.

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