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Agarwal Float Glass India (NSE:AGARWALFT) ROIC % : 9.18% (As of Sep. 2023)


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What is Agarwal Float Glass 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 %. Agarwal Float Glass India's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 9.18%.

As of today (2024-09-25), Agarwal Float Glass India's WACC % is 12.26%. Agarwal Float Glass India's ROIC % is 7.55% (calculated using TTM income statement data). Agarwal Float Glass India earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Agarwal Float Glass India ROIC % Historical Data

The historical data trend for Agarwal Float Glass 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.

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Agarwal Float Glass India ROIC % Chart

Agarwal Float Glass India Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROIC %
3.64 7.49 9.92 16.85

Agarwal Float Glass India Semi-Annual Data
Mar20 Mar21 Mar22 Sep22 Mar23 Sep23
ROIC % Get a 7-Day Free Trial - - 33.58 11.18 9.18

Competitive Comparison of Agarwal Float Glass India's ROIC %

For the Building Materials subindustry, Agarwal Float Glass 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.


Agarwal Float Glass India's ROIC % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Agarwal Float Glass India's ROIC % distribution charts can be found below:

* The bar in red indicates where Agarwal Float Glass India's ROIC % falls into.



Agarwal Float Glass India ROIC % Calculation

Agarwal Float Glass India'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 )
=47.136 * ( 1 - 28.7% )/( (154.678 + 244.165)/ 2 )
=33.607968/199.4215
=16.85 %

where

Agarwal Float Glass India's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=31.084 * ( 1 - 21.57% )/( (244.165 + 286.754)/ 2 )
=24.3791812/265.4595
=9.18 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 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.


Agarwal Float Glass India  (NSE:AGARWALFT) 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, Agarwal Float Glass India's WACC % is 12.26%. Agarwal Float Glass India's ROIC % is 7.55% (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.


Agarwal Float Glass India ROIC % Related Terms

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Agarwal Float Glass India Business Description

Traded in Other Exchanges
N/A
Address
H-1/790, Sitapura Industrial Area Ext., Near Fire Bridge Office, Jaipur, RJ, IND, 302022
Agarwal Float Glass India Ltd is engaged in the business of trading of glass and specialized glass products. The company procures quality products from manufacturers and thereafter sells the same through the sales managers or directly to customers, as a wholesaler of glass and glass products. The products are utilized in varied areas like office buildings, hotels, institutions, banks, insurance companies, shopping malls, diplomatic residences, and many others as per suitability. The product portfolio ranges between clear glass, different kinds of value-added glass products and processed glass products, of varying thicknesses.

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