GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Greenhitech Ventures Ltd (BOM:544163) » Definitions » ROIC %

Greenhitech Ventures (BOM:544163) ROIC % : 8.43% (As of Mar. 2023)


View and export this data going back to 2024. Start your Free Trial

What is Greenhitech Ventures 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 %. Greenhitech Ventures's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was 8.43%.

As of today (2024-12-12), Greenhitech Ventures's WACC % is 12.72%. Greenhitech Ventures's ROIC % is 8.43% (calculated using TTM income statement data). Greenhitech Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Greenhitech Ventures ROIC % Historical Data

The historical data trend for Greenhitech Ventures'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.

Greenhitech Ventures ROIC % Chart

Greenhitech Ventures Annual Data
Trend Mar21 Mar22 Mar23
ROIC %
5.85 16.64 8.43

Greenhitech Ventures Semi-Annual Data
Mar21 Mar22 Mar23
ROIC % 5.85 16.64 8.43

Competitive Comparison of Greenhitech Ventures's ROIC %

For the Oil & Gas Refining & Marketing subindustry, Greenhitech Ventures'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.


Greenhitech Ventures's ROIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Greenhitech Ventures's ROIC % distribution charts can be found below:

* The bar in red indicates where Greenhitech Ventures's ROIC % falls into.



Greenhitech Ventures ROIC % Calculation

Greenhitech Ventures'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 )
=14.505 * ( 1 - 41.38% )/( (119.138 + 82.512)/ 2 )
=8.502831/100.825
=8.43 %

where

Greenhitech Ventures's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

ROIC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=14.505 * ( 1 - 41.38% )/( (119.138 + 82.512)/ 2 )
=8.502831/100.825
=8.43 %

where

Note: The Operating Income data used here is one times the annual (Mar. 2023) 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.


Greenhitech Ventures  (BOM:544163) 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, Greenhitech Ventures's WACC % is 12.72%. Greenhitech Ventures's ROIC % is 8.43% (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.


Greenhitech Ventures ROIC % Related Terms

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


Greenhitech Ventures Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
B27/92 K1 Jawahar Nagar Colony, Bhelupura, Varanasi, UP, IND, 221010
Greenhitech Ventures Ltd is engaged in trading of various petroleum-based products for the different categories of industries based on their requirement. This includes the supply of biofuels, bitumen, light-density oils, furnace oils, etc. The company is also engaged in Operation & Maintenance as a Job worker for Ethanol manufacturing in government-owned distilleries. It understands the market needs and upgrades its team constantly with growing technology and market trends. The company provides business solutions and services to consumers of Fuels and other alternative materials across India.

Greenhitech Ventures Headlines

No Headlines