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Sundaram Clayton (NSE:SUNCLAY) ROIC % : -3.17% (As of Sep. 2024)


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What is Sundaram Clayton 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 %. Sundaram Clayton's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -3.17%.

As of today (2024-12-14), Sundaram Clayton's WACC % is 11.46%. Sundaram Clayton's ROIC % is -4.88% (calculated using TTM income statement data). Sundaram Clayton earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Sundaram Clayton ROIC % Historical Data

The historical data trend for Sundaram Clayton'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.

* Premium members only.

Sundaram Clayton ROIC % Chart

Sundaram Clayton Annual Data
Trend Mar21 Mar22 Mar23 Mar24
ROIC %
-13.49 -20.42 -1.24 -3.83

Sundaram Clayton Quarterly Data
Mar21 Mar22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only 0.78 - -4.37 -4.74 -3.17

Competitive Comparison of Sundaram Clayton's ROIC %

For the Metal Fabrication subindustry, Sundaram Clayton'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.


Sundaram Clayton's ROIC % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Sundaram Clayton's ROIC % falls into.



Sundaram Clayton ROIC % Calculation

Sundaram Clayton's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-723.9 * ( 1 - -23.37% )/( (19860.4 + 26746.6)/ 2 )
=-893.07543/23303.5
=-3.83 %

where

Sundaram Clayton's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-985.6 * ( 1 - -5.84% )/( (0 + 32890.1)/ 1 )
=-1043.15904/32890.1
=-3.17 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


Sundaram Clayton  (NSE:SUNCLAY) 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, Sundaram Clayton's WACC % is 11.46%. Sundaram Clayton's ROIC % is -4.88% (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.


Sundaram Clayton ROIC % Related Terms

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Sundaram Clayton Business Description

Comparable Companies
Traded in Other Exchanges
Address
No. 12, Khader Nawaz Khan Road, Chaitanya, Nungambakkam, Chennai, TN, IND, 600006
Sundaram Clayton Ltd is a company engaged in providing Die castings to automotive and non-automotive sector. The company's main business is to carry on the activity as a supplier of aluminum die castings to the automotive and non-automotive sectors. Geographically, the company derives maximum revenue from the domestic markets and the rest through exports.

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