ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. KRN Heat Exchanger and Refrigeration's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 13.27%.
As of today (2026-07-12), KRN Heat Exchanger and Refrigeration's WACC % is 12.94%. KRN Heat Exchanger and Refrigeration's ROIC % is 12.57% (calculated using TTM income statement data).
KRN Heat Exchanger and Refrigeration earns returns that do not match up to its cost of capital. It will destroy value as it grows.
KRN Heat Exchanger and Refrigeration (BOM:544263) 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, KRN Heat Exchanger and Refrigeration's WACC % is 12.94%. KRN Heat Exchanger and Refrigeration's ROIC % is 12.57% (calculated using TTM income statement data).
KRN Heat Exchanger and Refrigeration 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.
KRN Heat Exchanger and Refrigeration ROIC % Related Terms
KRN Heat Exchanger and Refrigeration 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 Electronic Components subindustry, KRN Heat Exchanger and Refrigeration'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.
KRN Heat Exchanger and Refrigeration ROIC % vs Hardware Industry
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
KRN Heat Exchanger and Refrigeration (BOM:544263) has a ROIC % of 13.27% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on KRN Heat Exchanger and Refrigeration and its competitors.
Is KRN Heat Exchanger and Refrigeration's ROIC % too high?
KRN Heat Exchanger and Refrigeration's current ROIC % is 13.27%. The Hardware industry median ROIC % is 4.12. KRN Heat Exchanger and Refrigeration's value of 13.27% is 222.1% above this industry median. Overall, KRN Heat Exchanger and Refrigeration has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does KRN Heat Exchanger and Refrigeration's ROIC % compare to APH and GLW?
KRN Heat Exchanger and Refrigeration's ROIC % of 13.27% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.12. KRN Heat Exchanger and Refrigeration's value of 13.27% is 222.1% above 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 4.12, based on 2,451 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. KRN Heat Exchanger and Refrigeration's current ROIC % of 13.27% is 222.1% above 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 KRN Heat Exchanger and Refrigeration and its competitors. For the Hardware industry, the median ROIC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KRN Heat Exchanger and Refrigeration's current ROIC % is 13.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KRN Heat Exchanger and Refrigeration stock overvalued right now?
KRN Heat Exchanger and Refrigeration (BOM:544263) has a current ROIC % of 13.27%. The current ROIC % is 13.27% and 222.1% above the Hardware industry median of 4.12. KRN Heat Exchanger and Refrigeration's overall GF Score™ is 56/100 with 8 warning signs to review. 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 KRN Heat Exchanger and Refrigeration (BOM:544263), the current ROIC % is 13.27% as of Mar. 2026. 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.
KRN Heat Exchanger and Refrigeration Business Description
KRN Heat Exchanger and Refrigeration Ltd manufacture fin and tube-type heat exchangers for the Heat Ventilation Air Conditioning and Refrigeration Industry. Heat exchangers manufactured by the company are made of non-ferrous metals, Copper and Aluminium. Its product range includes condenser coils, evaporator units, evaporator coils, header/copper parts, fluid and steam coils and sheet metal parts. The diameter of the heat exchanger tubes it produces ranges from 5MM to 15.88 MM. The company's products are well suited for a wide range of air conditioning, heating and ventilation, refrigeration and process cooling applications.
56GF Score
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