Rajputana Investment and Finance (BOM:539090) ROIC % : 6.67% (As of Dec. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Rajputana Investment and Finance 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 %. Rajputana Investment and Finance's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 6.67%.

As of today (2025-04-01), Rajputana Investment and Finance's WACC % is 7.69%. Rajputana Investment and Finance's ROIC % is 1.94% (calculated using TTM income statement data). Rajputana Investment and Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rajputana Investment and Finance ROIC % Historical Data

The historical data trend for Rajputana Investment and Finance'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.

Rajputana Investment and Finance ROIC % Chart

Rajputana Investment and Finance Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

Get a 7-Day Free Trial

-3.67

-9.41

-10.90

-5.37

9.24

Rajputana Investment and Finance 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															12.79	-8.57	10.57	-1.03	6.67

Competitive Comparison of Rajputana Investment and Finance's ROIC %

For the Auto & Truck Dealerships subindustry, Rajputana Investment and Finance'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.

Rajputana Investment and Finance's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Rajputana Investment and Finance's ROIC % distribution charts can be found below:

* The bar in red indicates where Rajputana Investment and Finance's ROIC % falls into.

Save Embed

;

Save Embed

;

Rajputana Investment and Finance ROIC % Calculation

Rajputana Investment and Finance'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 )
=	3.903 * ( 1 - 25.95% )	/	( (29.318	+	33.243)	/ 2 )
=	2.8901715	/	31.2805
=	9.24 %

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	))
=	32.192	-	0.109	-	( 2.765	-	max(0, 0.407	-	12.021	+	2.765	))
=	29.318

	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	))
=	41.666	-	4.251	-	( 4.172	-	max(0, 4.71	-	21.618	+	4.172	))
=	33.243

Rajputana Investment and Finance'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 )
=	3.336 * ( 1 - 25.98% )	/	( (37.043	+	0)	/ 1 )
=	2.4693072	/	37.043
=	6.67 %

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	))
=	42.918	-	3.9	-	( 1.975	-	max(0, 4.044	-	22.877	+	1.975	))
=	37.043

	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.

Rajputana Investment and Finance (BOM:539090) 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, Rajputana Investment and Finance's WACC % is 7.69%. Rajputana Investment and Finance's ROIC % is 1.94% (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.

Rajputana Investment and Finance ROIC % Related Terms

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

Rajputana Investment and Finance Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Rajputana Investment and Finance Ltd (BOM:539090) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

NH Bypass, Building No: 1/110, BRD Complex, Konikkara, Thrissur, KL, IND, 680306

Website

http://www.rajputanainvestment.com

Rajputana Investment and Finance Ltd is a Company that deals with the business of the sale of pre-owned luxury cars and related activities. It specializes in purchase, sale, and exchange of finest pre-owned luxury cars across the nation.

Rajputana Investment and Finance Headlines

No Headlines