ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Popular Vehicles and Services's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 1.17%.
As of today (2025-04-02), Popular Vehicles and Services's WACC % is 8.95%. Popular Vehicles and Services's ROIC % is 1.78% (calculated using TTM income statement data).
Popular Vehicles and Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Popular Vehicles and Services ROIC % Historical 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.
Competitive Comparison of Popular Vehicles and Services's ROIC %
For the Auto & Truck Dealerships subindustry, Popular Vehicles and Services'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.
Popular Vehicles and Services's ROIC % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Popular Vehicles and Services's ROIC % distribution charts can be found below:
* The bar in red indicates where Popular Vehicles and Services's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2024) 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.
Popular Vehicles and Services (NSE:PVSL) 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, Popular Vehicles and Services's WACC % is 8.95%. Popular Vehicles and Services's ROIC % is 1.78% (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.
Popular Vehicles and Services ROIC % Related Terms
Thank you for viewing the detailed overview of Popular Vehicles and Services's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Popular Vehicles and Services Business Description
Popular Vehicles and Services Ltd is engaged in automobile dealerships in India. It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, facilitating the sale and exchange of pre-owned vehicles, operating driving schools, and facilitating the sale of third-party financial and insurance products. The group has structured its business broadly into four verticals-Passenger cars (excluding luxury vehicles), Luxury vehicles, Commercial vehicles, and others. Others comprise spare parts retail sales - other than through the respective business segments and sale of electric vehicles - two-wheelers and three-wheelers. Key revenue is generated from the passenger cars segment.
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