Nakoda Group of Industries (BOM:541418) ROIC % : -2.01% (As of Dec. 2023)

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What is Nakoda Group of 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 %. Nakoda Group of Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -2.01%.

As of today (2024-05-01), Nakoda Group of Industries's WACC % is 20.15%. Nakoda Group of Industries's ROIC % is 2.49% (calculated using TTM income statement data). Nakoda Group of Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nakoda Group of Industries ROIC % Historical Data

The historical data trend for Nakoda Group of 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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Nakoda Group of Industries ROIC % Chart

Nakoda Group of Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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8.36

1.57

8.79

8.38

6.36

Nakoda Group of Industries Quarterly Data
	Dec17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															7.24	5.09	6.06	-1.30	-2.01

Competitive Comparison of Nakoda Group of Industries's ROIC %

For the Packaged Foods subindustry, Nakoda Group of 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.

Nakoda Group of Industries's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nakoda Group of Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Nakoda Group of Industries's ROIC % falls into.

Nakoda Group of Industries ROIC % Calculation

Nakoda Group of Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	32.457 * ( 1 - 22.9% )	/	( (392.662	+	394.77)	/ 2 )
=	25.024347	/	393.716
=	6.36 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	415.49	-	16.652	-	( 6.176	-	max(0, 160.583	-	289.038	+	6.176	))
=	392.662

	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	))
=	414.39	-	16.029	-	( 3.591	-	max(0, 175.192	-	287.093	+	3.591	))
=	394.77

Nakoda Group of Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-9.604 * ( 1 - 24.44% )	/	( (361.515	+	0)	/ 1 )
=	-7.2567824	/	361.515
=	-2.01 %

where

	Invested Capital		(Q: Sep. 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	))
=	428.958	-	48.899	-	( 18.544	-	max(0, 206.086	-	304.094	+	18.544	))
=	361.515

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Nakoda Group of Industries (BOM:541418) 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, Nakoda Group of Industries's WACC % is 20.15%. Nakoda Group of Industries's ROIC % is 2.49% (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.

Nakoda Group of Industries ROIC % Related Terms

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Nakoda Group of Industries (BOM:541418) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nakoda Group of Industries Ltd (BOM:541418) » Definitions » ROIC %

Traded in Other Exchanges

NGIL:India

Address

South Old Bagad Ganj, Plot No. 239, Small Factory Area, Nagpur, MH, IND, 440008

Website

https://www.nakodas.com

Nakoda Group of Industries Ltd is engaged in the manufacturing of tutti fruity and canned fruit cubes. The company is also engaged in trading of sesame seeds, clove, cut peel murabba, karonda, daalchini and toor daal. Its product categories comprise of jams, candies, canned products, pickles, papads, bakery ingredients, edible seeds and nuts, fruit pulp, and chickpeas.

Nakoda Group of Industries (BOM:541418) Headlines

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