ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Madhya Pradesh Today Media's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was 0.00%.
As of today (2024-12-12), Madhya Pradesh Today Media's WACC % is 1.96%. Madhya Pradesh Today Media's ROIC % is 6.62% (calculated using TTM income statement data).
Madhya Pradesh Today Media 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.
* 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.
Competitive Comparison of Madhya Pradesh Today Media's ROIC %
For the Publishing subindustry, Madhya Pradesh Today Media'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.
Madhya Pradesh Today Media's ROIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Madhya Pradesh Today Media's ROIC % distribution charts can be found below:
* The bar in red indicates where Madhya Pradesh Today Media's ROIC % falls into.
Madhya Pradesh Today Media ROIC % Calculation
Madhya Pradesh Today Media's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Mar. 2023) 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.
Madhya Pradesh Today Media (NSE:MPTODAY) 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, Madhya Pradesh Today Media's WACC % is 1.96%. Madhya Pradesh Today Media's ROIC % is 6.62% (calculated using TTM income statement data).
Madhya Pradesh Today Media 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.
Madhya Pradesh Today Media 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.
Madhya Pradesh Today Media ROIC % Related Terms
Thank you for viewing the detailed overview of Madhya Pradesh Today Media's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Madhya Pradesh Today Media Ltd is engaged in the publication of the newspaper, news through the news portal, and event-based magazines. The company's newspapers include Pradesh Today, and Morning Daily, among others. The company is primarily engaged in print media. It generates maximum revenue from Advertisements.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NSE:MPTODAY has been successfully added to your 