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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 %. Ridings Consulting Engineers India's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2022 was 1.30%.
As of today (2026-08-26), Ridings Consulting Engineers India's WACC % is 0.00%. Ridings Consulting Engineers India's ROIC % is 0.00% (calculated using TTM income statement data).
Ridings Consulting Engineers India earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ridings Consulting Engineers India (BOM:541151) 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, Ridings Consulting Engineers India's WACC % is 0.00%. Ridings Consulting Engineers India's ROIC % is 0.00% (calculated using TTM income statement data).
Ridings Consulting Engineers India 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.
Ridings Consulting Engineers India ROIC % Related Terms
Ridings Consulting Engineers India ROIC % Historical 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.
For the Scientific & Technical Instruments subindustry, Ridings Consulting Engineers India'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.
Ridings Consulting Engineers India ROIC % vs Hardware Industry
Note:
The Operating Income data used here is two times the semi-annual (Sep. 2022) 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.
Ridings Consulting Engineers India (BOM:541151) has a ROIC % of 1.30% as of Sep. 2022. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Ridings Consulting Engineers India and its competitors.
Is Ridings Consulting Engineers India's ROIC % too high?
Ridings Consulting Engineers India's current ROIC % is 1.30%. The Hardware industry median ROIC % is 4.67. Ridings Consulting Engineers India's value of 1.30% is 72.2% below this industry median. Overall, Ridings Consulting Engineers India has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Ridings Consulting Engineers India's ROIC % compare to FTV and KEYS?
Ridings Consulting Engineers India's ROIC % of 1.30% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.67. Ridings Consulting Engineers India's value of 1.30% is 72.2% 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 Hardware company?
The median ROIC % among Hardware companies is 4.67, based on 2,439 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. Ridings Consulting Engineers India's current ROIC % of 1.30% is 72.2% 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 Ridings Consulting Engineers India and its competitors. For the Hardware industry, the median ROIC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ridings Consulting Engineers India's current ROIC % is 1.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ridings Consulting Engineers India stock overvalued right now?
Ridings Consulting Engineers India (BOM:541151) has a current ROIC % of 1.30%. The current ROIC % is 1.30% and 72.2% below the Hardware industry median of 4.67. Ridings Consulting Engineers India's overall GF Score™ is 4/100. 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 Ridings Consulting Engineers India (BOM:541151), the current ROIC % is 1.30% as of Sep. 2022. 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.
Ridings Consulting Engineers India Ltd provides Geospatial Services which include Sub Surface Utility Engineering (SUE) Survey/ Ground-penetrating radar (GPR) Survey, Geographic Information Systems, and Geospatial database development, Geospatial -Marketing consulting and planning, Training, Geographic Information Systems for Utilities (Power, Water, and Telecom) and Land Surveying and Geospatial Data (Digital and Large Scale Geospatial Data). The Geographic Information Systems (GIS) applications include mapping of utilities such as electrical networks, telecom networks, water supply, and sewerage systems. It derives its Majority revenue from India and Outside India.
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