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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 %. Arvaya Healthcare's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.21%.
As of today (2026-07-15), Arvaya Healthcare's WACC % is 6.49%. Arvaya Healthcare's ROIC % is -0.10% (calculated using TTM income statement data).
Arvaya Healthcare earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Arvaya Healthcare (BOM:524723) 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, Arvaya Healthcare's WACC % is 6.49%. Arvaya Healthcare's ROIC % is -0.10% (calculated using TTM income statement data).
Arvaya Healthcare 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.
Arvaya Healthcare ROIC % Related Terms
Arvaya Healthcare ROIC % Historical Data
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The historical data trend for Arvaya Healthcare'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 Medical Distribution subindustry, Arvaya Healthcare'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.
Arvaya Healthcare ROIC % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Arvaya Healthcare's ROIC % distribution charts can be found below:
* The bar in red indicates where Arvaya Healthcare'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.
Arvaya Healthcare (BOM:524723) has a ROIC % of 2.21% 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 Arvaya Healthcare and its competitors.
Is Arvaya Healthcare's ROIC % too high?
Arvaya Healthcare's current ROIC % is 2.21%. The Medical Distribution industry median ROIC % is 5.26. Arvaya Healthcare's value of 2.21% is 58% below this industry median. Overall, Arvaya Healthcare has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arvaya Healthcare's ROIC % compare to MCK and CAH?
Arvaya Healthcare's ROIC % of 2.21% can be compared against companies in the Medical Distribution industry. The industry median ROIC % is 5.26. Arvaya Healthcare's value of 2.21% is 58% below 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 Medical Distribution company?
The median ROIC % among Medical Distribution companies is 5.26, based on 116 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. Arvaya Healthcare's current ROIC % of 2.21% is 58% below 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 Arvaya Healthcare and its competitors. For the Medical Distribution industry, the median ROIC % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arvaya Healthcare's current ROIC % is 2.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arvaya Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Arvaya Healthcare (BOM:524723) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹49.33, compared to a current price of ₹94.39 — trading 91.3% above its estimated fair value. The current ROIC % is 2.21% and 58% below the Medical Distribution industry median of 5.26. Arvaya Healthcare's overall GF Score™ is 34/100 with 6 warning signs to review. 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 Arvaya Healthcare (BOM:524723), the current ROIC % is 2.21% 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.
Is Arvaya Healthcare (BOM:524723) Overvalued in 2026?
Based on GuruFocus' analysis, Arvaya Healthcare stock appears to be overvalued.
The current stock price of ₹94.39 is trading 91.3% above its estimated GF Value™ of ₹49.33.
GuruFocus considers Arvaya Healthcare to be Significantly Overvalued.
Key valuation signals for BOM:524723:
ROIC %: 2.21%
GF Value™: ₹49.33 vs. price of ₹94.39 (91.3% above fair value)
Industry Position: 58% below the Medical Distribution median
No single metric tells the full story. See the BOM:524723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arvaya Healthcare Ltd is focused on developing an integrated healthcare platform in India that combines hospital services, diagnostics, wellness services, and digital health management solutions. Its operations include multi-specialty hospitals, a digital health platform for appointment booking and health record management, diagnostic services including laboratory testing and home sample collection, and wellness facilities offering preventive and recovery-focused programs.
34GF Score
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