Global Pet Industries (NSE:GLOBALPET) ROIC % : 13.69% (As of Mar. 2022)

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What is Global Pet Industries 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 %. Global Pet Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2022 was 13.69%.

As of today (2024-05-24), Global Pet Industries's WACC % is 0.00%. Global Pet Industries's ROIC % is 0.00% (calculated using TTM income statement data). Global Pet Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global Pet Industries ROIC % Historical Data

The historical data trend for Global Pet Industries'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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Global Pet Industries ROIC % Chart

Global Pet Industries Annual Data

Trend

Mar20

Mar21

Mar22

ROIC %

16.24

21.40

13.69

Global Pet Industries Semi-Annual Data
	Mar20	Mar21	Mar22
ROIC %	16.24	21.40	13.69

Competitive Comparison of Global Pet Industries's ROIC %

For the Specialty Industrial Machinery subindustry, Global Pet Industries'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.

Global Pet Industries's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Global Pet Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Global Pet Industries's ROIC % falls into.

Global Pet Industries ROIC % Calculation

Global Pet Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2022 is calculated as:

	ROIC % (A: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2021 )	+	Invested Capital (A: Mar. 2022 ))	/ count )
=	12.505 * ( 1 - 24.76% )	/	( (62.55	+	74.883)	/ 2 )
=	9.408762	/	68.7165
=	13.69 %

where

	Invested Capital		(A: Mar. 2021 )
=	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	))
=	159.278	-	53.756	-	( 59.014	-	max(0, 98.414	-	141.386	+	59.014	))
=	62.55

	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	))
=	167.912	-	36.415	-	( 62.231	-	max(0, 94.931	-	151.545	+	62.231	))
=	74.883

Global Pet Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROIC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	12.505 * ( 1 - 24.76% )	/	( (62.55	+	74.883)	/ 2 )
=	9.408762	/	68.7165
=	13.69 %

where

	Invested Capital		(Q: Mar. 2021 )
=	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	))
=	159.278	-	53.756	-	( 59.014	-	max(0, 98.414	-	141.386	+	59.014	))
=	62.55

	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	))
=	167.912	-	36.415	-	( 62.231	-	max(0, 94.931	-	151.545	+	62.231	))
=	74.883

Note: The Operating Income data used here is one times the annual (Mar. 2022) data.

Global Pet Industries (NSE:GLOBALPET) 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, Global Pet Industries's WACC % is 0.00%. Global Pet Industries's ROIC % is 0.00% (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.

Global Pet Industries ROIC % Related Terms

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Global Pet Industries (NSE:GLOBALPET) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Global Pet Industries Ltd (NSE:GLOBALPET) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit Nos. 8 to 15, 108 & 109, Karishma Industrial Estate, Survey No. 36, Hissa No. 5, Village Waliv, Dhumal Nagar, Near Rashmi Bungalow, Vasai East, Palghar, Vasai, MH, IND, 401208

Website

https://www.globalpetind.com

Global Pet Industries Ltd is engaged in manufacturing of PET Stretch Blow Moulding Machine which is used for manufacturing of machine which is suitable in the business segment of Pet stretch below moulding solutions from 50ml to 20 Litres of PET bottles such as fridge bottles, packaged drinking mineral water bottles, carbonated soft drinks bottles, hot fill juice bottles, edible oil bottles, liquid detergent bottles, cosmetic products bottles, confectionery jars, Pharma bottles, liquor & distilleries bottles, pesticides bottles, etc. Apart from manufacturing of PET Stretch Blow Moulding Machine, the company also provides after-sales services such as providing spares, components, accessories and providing repairs and maintenance of the machines after delivery.

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