ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Cube Highways Trust's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 7.90%.
As of today (2025-04-06), Cube Highways Trust's WACC % is 10.90%. Cube Highways Trust's ROIC % is 2.37% (calculated using TTM income statement data).
Cube Highways Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cube Highways Trust ROIC % Historical Data
The historical data trend for Cube Highways Trust'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.
Competitive Comparison of Cube Highways Trust's ROIC %
For the Infrastructure Operations subindustry, Cube Highways Trust'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.
Cube Highways Trust's ROIC % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Cube Highways Trust's ROIC % distribution charts can be found below:
* The bar in red indicates where Cube Highways Trust's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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, Cube Highways Trust's WACC % is 10.90%. Cube Highways Trust's ROIC % is 2.37% (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.
Cube Highways Trust ROIC % Related Terms
Thank you for viewing the detailed overview of Cube Highways Trust's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cube Highways Trust is an Indian infrastructure investment trust sponsored by Cube Highways and Infrastructure Pte. Ltd. and Cube Highways and Infrastructure III Pte. Ltd., established to acquire and operate road assets in India and registered under the InvIT Regulations. The Cube Group is implementing the public-private partnership (PPP) model in the country's highways sector to operate and manage highway projects in association with the central and state governments.
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