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De Nora India (BOM:590031) ROIC % : -56.54% (As of Dec. 2024)


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What is De Nora India 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 %. De Nora India's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -56.54%.

As of today (2025-03-15), De Nora India's WACC % is 6.59%. De Nora India's ROIC % is 0.39% (calculated using TTM income statement data). De Nora India earns returns that do not match up to its cost of capital. It will destroy value as it grows.


De Nora India ROIC % Historical Data

The historical data trend for De Nora India'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.

De Nora India ROIC % Chart

De Nora India Annual Data
Trend Dec14 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.54 10.13 34.57 38.50 28.47

De Nora India Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.99 33.88 12.57 13.05 -56.54

Competitive Comparison of De Nora India's ROIC %

For the Electrical Equipment & Parts subindustry, De Nora India'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.


De Nora India's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, De Nora India's ROIC % distribution charts can be found below:

* The bar in red indicates where De Nora India's ROIC % falls into.



De Nora India ROIC % Calculation

De Nora India's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=209.481 * ( 1 - 24.65% )/( (509.277 + 599.581)/ 2 )
=157.8439335/554.429
=28.47 %

where

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))
=1156.6 - 80.666 - ( 566.657 - max(0, 135.795 - 1033.527+566.657))
=509.277

Invested Capital(A: Mar. 2024 )
=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))
=1266.729 - 45.887 - ( 621.261 - max(0, 69.73 - 1009.53+621.261))
=599.581

De Nora India's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-473.08 * ( 1 - 24.35% )/( (632.999 + 0)/ 1 )
=-357.88502/632.999
=-56.54 %

where

Invested Capital(Q: Sep. 2024 )
=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))
=1439.828 - 111.716 - ( 695.113 - max(0, 191.473 - 1111.543+695.113))
=632.999

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


De Nora India  (BOM:590031) 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, De Nora India's WACC % is 6.59%. De Nora India's ROIC % is 0.39% (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.


De Nora India ROIC % Related Terms

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De Nora India Business Description

Traded in Other Exchanges
Address
Kumdaim Industrial Estate, Plot Nos. 184, 185 & 189, Kundiam, GA, IND, 403115
De Nora India Ltd manufactures and sells electrolytic products in India. It is recognized as a supplier of technologies for the production of chlorine, caustic soda, and derivatives for the chlor-alkali industry as well as the international manufacturer and recoater of noble metal-coated electrodes, electrolyzers, coating solutions for the electrochemical industry in general. The company's operating segment includes Electrode Technologies, which generates the majority of revenue, and Water Technologies. Geographically, it derives a majority of its revenue from India. The company serves various markets, such as agriculture and livestock, chlorine and caustic industry, bleaching chemicals, corrosion prevention, electronics, energy, food industry, marine, and others.

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