Destiny Logistics & Infra (NSE:DESTINY) ROIC % : 8.83% (As of Mar. 2023)

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What is Destiny Logistics & Infra 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 %. Destiny Logistics & Infra's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was 8.83%.

As of today (2024-06-16), Destiny Logistics & Infra's WACC % is 13.02%. Destiny Logistics & Infra's ROIC % is 8.84% (calculated using TTM income statement data). Destiny Logistics & Infra earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Destiny Logistics & Infra ROIC % Historical Data

The historical data trend for Destiny Logistics & Infra'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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Destiny Logistics & Infra ROIC % Chart

Destiny Logistics & Infra Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

8.15

7.72

10.41

9.72

8.83

Destiny Logistics & Infra Semi-Annual Data
	Mar19	Mar20	Mar21	Mar22	Mar23
ROIC %	8.15	7.72	10.41	9.72	8.83

Competitive Comparison of Destiny Logistics & Infra's ROIC %

For the Trucking subindustry, Destiny Logistics & Infra'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.

Destiny Logistics & Infra's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Destiny Logistics & Infra's ROIC % distribution charts can be found below:

* The bar in red indicates where Destiny Logistics & Infra's ROIC % falls into.

Destiny Logistics & Infra ROIC % Calculation

Destiny Logistics & Infra'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 )
=	31.796 * ( 1 - 28.38% )	/	( (213.744	+	301.762)	/ 2 )
=	22.7722952	/	257.753
=	8.83 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	267.813	-	49.759	-	( 4.31	-	max(0, 98.833	-	215.646	+	4.31	))
=	213.744

	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	))
=	404.665	-	100.589	-	( 2.314	-	max(0, 131.966	-	273.093	+	2.314	))
=	301.762

Destiny Logistics & Infra's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROIC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	31.796 * ( 1 - 28.38% )	/	( (213.744	+	301.762)	/ 2 )
=	22.7722952	/	257.753
=	8.83 %

where

	Invested Capital		(Q: Mar. 2022 )
=	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	))
=	267.813	-	49.759	-	( 4.31	-	max(0, 98.833	-	215.646	+	4.31	))
=	213.744

	Invested Capital		(Q: 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	))
=	404.665	-	100.589	-	( 2.314	-	max(0, 131.966	-	273.093	+	2.314	))
=	301.762

Note: The Operating Income data used here is one times the annual (Mar. 2023) data.

Destiny Logistics & Infra (NSE:DESTINY) 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, Destiny Logistics & Infra's WACC % is 13.02%. Destiny Logistics & Infra's ROIC % is 8.84% (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.

Destiny Logistics & Infra ROIC % Related Terms

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Destiny Logistics & Infra (NSE:DESTINY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Destiny Logistics & Infra Ltd (NSE:DESTINY) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

ECO Centre, Block - EM-4 Sector- V, Unit No. 708, 7th Floor, Salt Lake, Kolkata, WB, IND, 700091

Website

https://www.destinyinfra.in

Destiny Logistics & Infra Ltd provide logistics, manpower and infrastructural services. It offers land-based transportation through third-party service providers. It provides a wide range of services such as packaging, loading, transportation, unloading, and unpacking of items to offer end-to-end solutions. The company's operations are concentrated in the domestic market, particularly, in the state of West Bengal. The company operates in Transport and Construction services, out of which the majority is from the Construction services.

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