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Cyient DLM (NSE:CYIENTDLM) ROIC % : 12.31% (As of Mar. 2025)


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What is Cyient DLM 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 %. Cyient DLM's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 12.31%.

As of today (2025-04-24), Cyient DLM's WACC % is 12.55%. Cyient DLM's ROIC % is 7.95% (calculated using TTM income statement data). Cyient DLM earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Cyient DLM ROIC % Historical Data

The historical data trend for Cyient DLM'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.

Cyient DLM ROIC % Chart

Cyient DLM Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
ROIC %
5.86 11.11 8.19 8.62 7.90

Cyient DLM Quarterly Data
Mar21 Mar22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.77 4.97 7.70 5.58 12.31

Competitive Comparison of Cyient DLM's ROIC %

For the Electronic Components subindustry, Cyient DLM'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.


Cyient DLM's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cyient DLM's ROIC % distribution charts can be found below:

* The bar in red indicates where Cyient DLM's ROIC % falls into.


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Cyient DLM ROIC % Calculation

Cyient DLM'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 )
=1031.12 * ( 1 - 25.78% )/( (8005.35 + 11363.07)/ 2 )
=765.297264/9684.21
=7.90 %

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))
=16032.76 - 3450.52 - ( 4576.89 - max(0, 5394.24 - 13259.11+4576.89))
=8005.35

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))
=16939.13 - 2584.14 - ( 2991.92 - max(0, 5337.55 - 12816.67+2991.92))
=11363.07

Cyient DLM's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

ROIC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=1877.52 * ( 1 - 25.51% )/( (0 + 11363.07)/ 1 )
=1398.564648/11363.07
=12.31 %

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))
=16939.13 - 2584.14 - ( 2991.92 - max(0, 5337.55 - 12816.67+2991.92))
=11363.07

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) 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.


Cyient DLM  (NSE:CYIENTDLM) 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, Cyient DLM's WACC % is 12.55%. Cyient DLM's ROIC % is 7.95% (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.


Cyient DLM ROIC % Related Terms

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Cyient DLM Business Description

Traded in Other Exchanges
Address
Plot no.347, D1 &2, KIADB, Electronics City, Hebbal Industrial Area, Mysuru, KA, IND, 570016
Cyient DLM Ltd is engaged in integrated Electronic Manufacturing Services (EMS) and solutions providers with capabilities across the value chain and the entire life cycle of a product, including design, build, and maintenance. Its solutions comprise the manufacture of the printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment, which the company provides to its clients as B2P or B2S services.

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