ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Medistep Healthcare's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 25.61%.
As of today (2026-07-06), Medistep Healthcare's WACC % is 12.88%. Medistep Healthcare's ROIC % is 25.61% (calculated using TTM income statement data).
Medistep Healthcare generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Medistep Healthcare's WACC % is 12.88%. Medistep Healthcare's ROIC % is 25.61% (calculated using TTM income statement data).
Medistep Healthcare generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Medistep Healthcare ROIC % Related Terms
Medistep Healthcare ROIC % Historical Data
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The historical data trend for Medistep Healthcare'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.
Medistep Healthcare ROIC % Chart
Medistep Healthcare Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROIC %
14.37
55.72
44.05
25.61
Medistep Healthcare Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
ROIC %
14.37
55.72
44.05
25.61
NSE:MEDISTEP vs MCK, CAH, COR: ROIC % Comparison
For the Medical Distribution subindustry, Medistep Healthcare'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.
Medistep Healthcare ROIC % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Medistep Healthcare's ROIC % distribution charts can be found below:
* The bar in red indicates where Medistep Healthcare's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Mar. 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.
Medistep Healthcare (NSE:MEDISTEP) has a ROIC % of 25.61% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Medistep Healthcare and its competitors.
Is Medistep Healthcare's ROIC % too high?
Medistep Healthcare's current ROIC % is 25.61%. The Medical Distribution industry median ROIC % is 5.26. Medistep Healthcare's value of 25.61% is 386.9% above this industry median. Overall, Medistep Healthcare has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Medistep Healthcare's ROIC % compare to MCK and CAH?
Medistep Healthcare's ROIC % of 25.61% can be compared against companies in the Medical Distribution industry. The industry median ROIC % is 5.26. Medistep Healthcare's value of 25.61% is 386.9% 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 Medical Distribution company?
The median ROIC % among Medical Distribution companies is 5.26, based on 116 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. Medistep Healthcare's current ROIC % of 25.61% is 386.9% 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 Medistep Healthcare and its competitors. For the Medical Distribution industry, the median ROIC % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medistep Healthcare's current ROIC % is 25.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medistep Healthcare stock overvalued right now?
Medistep Healthcare (NSE:MEDISTEP) has a current ROIC % of 25.61%. The current ROIC % is 25.61% and 386.9% above the Medical Distribution industry median of 5.26. Medistep Healthcare's overall GF Score™ is 30/100 with 2 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 Medistep Healthcare (NSE:MEDISTEP), the current ROIC % is 25.61% as of Mar. 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.
Medistep Healthcare Ltd operates in the pharmaceutical and healthcare product sectors. Its business includes manufacturing intimate care and hygiene products such as sanitary pads, as well as nutraceutical products like energy powders. The company also trades a variety of pharmaceutical, surgical, and medical equipment products. Medistep Healthcare's operations focus mainly on the western region of India, particularly in Gujarat. Its Core business activity is divided into the following categories: a) Trading of Pharmaceutical & Surgical products, b) Trading & Manufacturing of Nutraceuticals and Intimate care & hygiene products. The company generates the majority of its revenue from Trading and distribution.
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