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Vimta Labs (BOM:524394) ROIC % : 17.02% (As of Dec. 2024)


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What is Vimta Labs 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 %. Vimta Labs's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 17.02%.

As of today (2025-03-28), Vimta Labs's WACC % is 9.17%. Vimta Labs's ROIC % is 15.45% (calculated using TTM income statement data). Vimta Labs generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Vimta Labs ROIC % Historical Data

The historical data trend for Vimta Labs'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.

Vimta Labs ROIC % Chart

Vimta Labs 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 4.21 11.90 18.73 18.97 13.97

Vimta Labs 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 14.25 10.75 14.28 16.78 17.02

Competitive Comparison of Vimta Labs's ROIC %

For the Diagnostics & Research subindustry, Vimta Labs'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.


Vimta Labs's ROIC % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Vimta Labs's ROIC % distribution charts can be found below:

* The bar in red indicates where Vimta Labs's ROIC % falls into.


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Vimta Labs ROIC % Calculation

Vimta Labs'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 )
=575.12 * ( 1 - 24.73% )/( (2802.76 + 3396.11)/ 2 )
=432.892824/3099.435
=13.97 %

where

Vimta Labs'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 )
=931 * ( 1 - 26.76% )/( (4005.21 + 0)/ 1 )
=681.8644/4005.21
=17.02 %

where

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.


Vimta Labs  (BOM:524394) 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, Vimta Labs's WACC % is 9.17%. Vimta Labs's ROIC % is 15.45% (calculated using TTM income statement data). Vimta Labs generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Vimta Labs 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.


Vimta Labs ROIC % Related Terms

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Vimta Labs Business Description

Traded in Other Exchanges
Address
Plot No.141/2 & 142, IDA, Phase-II, Cherlapally, R. R. District, Hyderabad, TG, IND, 500051
Vimta Labs Ltd is a comprehensive contract research and testing organization, providing a wide range of services to pharmaceutical, biopharmaceutical, food, consumer goods, electronic, electrical, agrochemical, healthcare, medical device, and many other industries. Its services portfolio includes testing and contract research services in the fields of clinical research, pre-clinical research, clinical diagnostics, biopharma services, analytical testing, research and environmental studies, and Others. It has only one reportable segment namely Contract Research and Testing Services which generates the revenue.

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