ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Droneacharya Aerial Innovations's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 4.19%.
As of today (2024-09-25), Droneacharya Aerial Innovations's WACC % is 13.01%. Droneacharya Aerial Innovations's ROIC % is 7.12% (calculated using TTM income statement data).
Droneacharya Aerial Innovations earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Droneacharya Aerial Innovations 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.
Competitive Comparison of Droneacharya Aerial Innovations's ROIC %
For the Computer Hardware subindustry, Droneacharya Aerial Innovations'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.
Droneacharya Aerial Innovations's ROIC % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Droneacharya Aerial Innovations's ROIC % distribution charts can be found below:
* The bar in red indicates where Droneacharya Aerial Innovations's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
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, Droneacharya Aerial Innovations's WACC % is 13.01%. Droneacharya Aerial Innovations's ROIC % is 7.12% (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.
Droneacharya Aerial Innovations ROIC % Related Terms
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Droneacharya Aerial Innovations Business Description
Droneacharya Aerial Innovations Ltd provides high-end ecosystem of Drone solutions for multi-sensor Drone surveys, data processing of Drone data using robust high configuration workstations, The main operations of the company are Imparting the Drone operation Training, Drone supply and Maintenance services , Management Consultancy and training services. Drone pilot training & specialized GIS training. The company's offerings can be classified into four broad categories namely, Training, Services, Surveillance and others.
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