GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Tijaria Polypipes Ltd (BOM:533629) » Definitions » ROIC %

Tijaria Polypipes (BOM:533629) ROIC % : -6.56% (As of Mar. 2024)


View and export this data going back to 2011. Start your Free Trial

What is Tijaria Polypipes 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 %. Tijaria Polypipes's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -6.56%.

As of today (2024-07-15), Tijaria Polypipes's WACC % is 1.12%. Tijaria Polypipes's ROIC % is -6.06% (calculated using TTM income statement data). Tijaria Polypipes earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Tijaria Polypipes ROIC % Historical Data

The historical data trend for Tijaria Polypipes'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.

Tijaria Polypipes ROIC % Chart

Tijaria Polypipes 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 4.76 -10.44 -19.26 -13.64 -6.13

Tijaria Polypipes Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -20.53 -6.53 -5.44 -5.63 -6.56

Competitive Comparison of Tijaria Polypipes's ROIC %

For the Building Products & Equipment subindustry, Tijaria Polypipes'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.


Tijaria Polypipes's ROIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Tijaria Polypipes's ROIC % distribution charts can be found below:

* The bar in red indicates where Tijaria Polypipes's ROIC % falls into.



Tijaria Polypipes ROIC % Calculation

Tijaria Polypipes'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 )
=-30.705 * ( 1 - 0% )/( (543.89 + 457.711)/ 2 )
=-30.705/500.8005
=-6.13 %

where

Tijaria Polypipes's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-31.576 * ( 1 - 0% )/( (504.892 + 457.711)/ 2 )
=-31.576/481.3015
=-6.56 %

where

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))
=595.977 - 73.561 - ( 17.524 - max(0, 204.931 - 347.369+17.524))
=504.892

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


Tijaria Polypipes  (BOM:533629) 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, Tijaria Polypipes's WACC % is 1.12%. Tijaria Polypipes's ROIC % is -6.06% (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.


Tijaria Polypipes ROIC % Related Terms

Thank you for viewing the detailed overview of Tijaria Polypipes's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tijaria Polypipes (BOM:533629) Business Description

Traded in Other Exchanges
Address
SP-1-2316, RIICO Industrial Area, Ramchandrapura, Sitapura Extension, Jaipur, RJ, IND, 302022
Tijaria Polypipes Ltd manufactures HDPE Pipes, PLB HDPE Duct, MDPE Pipes, DWC HDPE Pipes, uPVC Pipes, PVC-U Pipes, Mink Blankets, partially oriented yarn, and draw textured yarn, surgical masks, N-95 Mask under the registered brand name of Tijaria and Vikas. The company operates in two segments Pipes and Textiles. The company produces a product range in the field of plastics, HDPE Pipes for Electrical, Water and Sewerage, PVC-U and DWC HDPE Pipes for Sewerage, uPVC Pipes for Water, PLB HDPE Ducts for telecommunications, HDPE Sprinkler Irrigation Systems, MDPE Pipes for Water Supply etc. The majority of its revenue is generated from the pipes segment.

Tijaria Polypipes (BOM:533629) Headlines

No Headlines