Nagpur Power & Industries (BOM:532362) ROIC % : -2.27% (As of Dec. 2024)

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What is Nagpur Power & Industries 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 %. Nagpur Power & Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -2.27%.

As of today (2025-04-07), Nagpur Power & Industries's WACC % is 9.02%. Nagpur Power & Industries's ROIC % is -0.28% (calculated using TTM income statement data). Nagpur Power & Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nagpur Power & Industries ROIC % Historical Data

The historical data trend for Nagpur Power & Industries'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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Nagpur Power & Industries ROIC % Chart

Nagpur Power & Industries Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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-10.77

-1.26

-5.06

-2.43

0.32

Nagpur Power & Industries 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															-0.20	5.84	-12.74	7.11	-2.27

Competitive Comparison of Nagpur Power & Industries's ROIC %

For the Electrical Equipment & Parts subindustry, Nagpur Power & Industries'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.

Nagpur Power & Industries's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nagpur Power & Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Nagpur Power & Industries's ROIC % falls into.

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Nagpur Power & Industries ROIC % Calculation

Nagpur Power & Industries'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 )
=	2.578 * ( 1 - 0% )	/	( (782.247	+	826.484)	/ 2 )
=	2.578	/	804.3655
=	0.32 %

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	))
=	1039.061	-	53.898	-	( 202.916	-	max(0, 187.983	-	416.805	+	202.916	))
=	782.247

	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	))
=	1090.382	-	65.764	-	( 198.134	-	max(0, 242.089	-	461.845	+	198.134	))
=	826.484

Nagpur Power & Industries'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 )
=	-22.104 * ( 1 - 0% )	/	( (975.892	+	0)	/ 1 )
=	-22.104	/	975.892
=	-2.27 %

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	))
=	1251.859	-	59.985	-	( 215.982	-	max(0, 356.627	-	599.237	+	215.982	))
=	975.892

	Invested Capital		(Q: Dec. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

Nagpur Power & Industries (BOM:532362) 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, Nagpur Power & Industries's WACC % is 9.02%. Nagpur Power & Industries's ROIC % is -0.28% (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.

Nagpur Power & Industries ROIC % Related Terms

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Nagpur Power & Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Nagpur Power & Industries Ltd (BOM:532362) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Nirmal Building, 20th Floor, Nariman Point, Mumbai, MH, IND, 400021

Website

https://www.nagpurpowerind.com

Nagpur Power & Industries Ltd is an India-based company that extracts high, medium, and low-carbon ferro manganese and silico manganese slag. The company sells its products to the power sector and energy-intensive industries. It operates its business through the segments of High/Medium/low-carbon ferro Manganese and silico manganese slag.

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