ARC Insulation & Insulators (NSE:ARCIIL) ROIC %: 5.08% (As of Sep. 2025)


NSE:ARCIIL ARC Insulation & Insulators Ltd NSE:ARCIIL
21 GF Score
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! 5 Warning Signs
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What is ARC Insulation & Insulators ROIC %?

ARC Insulation & Insulators NSE:ARCIIL -2.20% 21 ROIC % is 5.08% as of Sep. 2025. GuruFocus rates NSE:ARCIIL with a GF Score™ of 21/100. The stock has 5 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. ARC Insulation & Insulators's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 5.08%.

As of today (2026-06-29), ARC Insulation & Insulators's WACC % is 12.40%. ARC Insulation & Insulators's ROIC % is 2.54% (calculated using TTM income statement data). ARC Insulation & Insulators earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ARC Insulation & Insulators  (NSE:ARCIIL) 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, ARC Insulation & Insulators's WACC % is 12.40%. ARC Insulation & Insulators's ROIC % is 2.54% (calculated using TTM income statement data). ARC Insulation & Insulators 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.

ARC Insulation & Insulators ROIC % Related Terms

ARC Insulation & Insulators ROIC % Historical Data

* Premium members only.

The historical data trend for ARC Insulation & Insulators'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.

ARC Insulation & Insulators ROIC % Chart

ARC Insulation & Insulators Annual Data
Trend Mar22 Mar23 Mar24 Mar25
ROIC %
9.05 26.73 41.40 35.42

ARC Insulation & Insulators Semi-Annual Data
Mar22 Mar23 Mar24 Mar25 Sep25
ROIC % 0.00 0.00 0.00 0.00 5.08

NSE:ARCIIL vs TT, JCI, CARR: ROIC % Comparison

For the Building Products & Equipment subindustry, ARC Insulation & Insulators'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.

ARC Insulation & Insulators ROIC % vs Construction Industry

For the Construction industry and Industrials sector, ARC Insulation & Insulators's ROIC % distribution charts can be found below:

* The bar in red indicates where ARC Insulation & Insulators's ROIC % falls into.


NSE:ARCIIL
21GF Score
ARC Insulation & Insulators Ltd NSE:ARCIIL
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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ARC Insulation & Insulators ROIC % Calculation

ARC Insulation & Insulators's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROIC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=117.82 * ( 1 - 26.06% )/( (165.173 + 326.714)/ 2 )
=87.116108/245.9435
=35.42 %

where

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))
=224.193 - 50.825 - ( 8.195 - max(0, 82.007 - 115.184+8.195))
=165.173

Invested Capital(A: Mar. 2025 )
=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))
=392.958 - 58.605 - ( 7.639 - max(0, 107.596 - 219.033+7.639))
=326.714

ARC Insulation & Insulators's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2025 is calculated as:

ROIC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=23.406 * ( 1 - 25.16% )/( (326.714 + 363.52)/ 2 )
=17.5170504/345.117
=5.08 %

where

Invested Capital(Q: Mar. 2025 )
=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))
=392.958 - 58.605 - ( 7.639 - max(0, 107.596 - 219.033+7.639))
=326.714

Invested Capital(Q: Sep. 2025 )
=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))
=669.342 - 44.496 - ( 261.326 - max(0, 74.668 - 498.713+261.326))
=363.52

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 5.08% mean?
ARC Insulation & Insulators (NSE:ARCIIL) has a ROIC % of 5.08% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on ARC Insulation & Insulators and its competitors.
Is ARC Insulation & Insulators' ROIC % too high?
ARC Insulation & Insulators' current ROIC % is 5.08%. The Construction industry median ROIC % is 4.66. ARC Insulation & Insulators' value of 5.08% is 9% above this industry median. Overall, ARC Insulation & Insulators has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does ARC Insulation & Insulators' ROIC % compare to TT and JCI?
ARC Insulation & Insulators' ROIC % of 5.08% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. ARC Insulation & Insulators' value of 5.08% is 9% 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 Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 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. ARC Insulation & Insulators's current ROIC % of 5.08% is 9% 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 ARC Insulation & Insulators and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARC Insulation & Insulators's current ROIC % is 5.08%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARC Insulation & Insulators stock overvalued right now?
ARC Insulation & Insulators (NSE:ARCIIL) has a current ROIC % of 5.08%. The current ROIC % is 5.08% and 9% above the Construction industry median of 4.66. ARC Insulation & Insulators' overall GF Score™ is 21/100 with 5 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 ARC Insulation & Insulators (NSE:ARCIIL), the current ROIC % is 5.08% as of Sep. 2025. 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.

ARC Insulation & Insulators Business Description

Address Village - Ramdevpur, PO-Bawali Bishnupur 2, Parganas South, Bishnupur, WB, IND, 743384
ARC Insulation & Insulators Ltd specializes in the manufacturing and supply of Glass Fiber Reinforced Polymers, Fiber Reinforced Polymers Products (FRP) composite/constituency products which provides corrosion-resistant, tensile strength and insulating Glass Fiber Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars. It produces dent-resistant, low thermal expansion, corrosion resistant, and insulating GFRP. Its offerings include GFRP Rebars, GFRP Granting Walkways, GFRP Pipelines, GFRP Tubes, GFRP Fencing for Transformers, GFRP Cable Trays, and other related products designed for industrial, energy and marine's sectors construction and industrial applications.
21GF Score

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