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Suraj Estate Developers (NSE:SURAJEST) ROIC % : 14.53% (As of Sep. 2024)


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What is Suraj Estate Developers 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 %. Suraj Estate Developers's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 14.53%.

As of today (2024-12-14), Suraj Estate Developers's WACC % is 13.47%. Suraj Estate Developers's ROIC % is 14.59% (calculated using TTM income statement data). Suraj Estate Developers 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.


Suraj Estate Developers ROIC % Historical Data

The historical data trend for Suraj Estate Developers'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.

Suraj Estate Developers ROIC % Chart

Suraj Estate Developers Annual Data
Trend Mar21 Mar22 Mar23 Mar24
ROIC %
7.97 12.54 12.99 15.76

Suraj Estate Developers Quarterly Data
Mar21 Mar22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only 20.61 - 11.81 15.47 14.53

Competitive Comparison of Suraj Estate Developers's ROIC %

For the Real Estate - Development subindustry, Suraj Estate Developers'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.


Suraj Estate Developers's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Suraj Estate Developers's ROIC % distribution charts can be found below:

* The bar in red indicates where Suraj Estate Developers's ROIC % falls into.



Suraj Estate Developers ROIC % Calculation

Suraj Estate Developers'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 )
=2306.6 * ( 1 - 28.1% )/( (9176.14 + 11876.17)/ 2 )
=1658.4454/10526.155
=15.76 %

where

Invested Capital(A: Mar. 2023 )
=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))
=10042.79 - 745.6 - ( 121.05 - max(0, 5813.57 - 9534.22+121.05))
=9176.14

Invested Capital(A: Mar. 2024 )
=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))
=12903.8 - 963.47 - ( 64.16 - max(0, 5223.79 - 12352.55+64.16))
=11876.17

Suraj Estate Developers'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 )
=2490 * ( 1 - 27.19% )/( (0 + 12480)/ 1 )
=1812.969/12480
=14.53 %

where

Invested Capital(Q: Sep. 2024 )
=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))
=13988.67 - 860.41 - ( 648.26 - max(0, 5683.27 - 13456.39+648.26))
=12480

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.


Suraj Estate Developers  (NSE:SURAJEST) 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, Suraj Estate Developers's WACC % is 13.47%. Suraj Estate Developers's ROIC % is 14.59% (calculated using TTM income statement data). Suraj Estate Developers 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. Suraj Estate Developers 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.


Suraj Estate Developers ROIC % Related Terms

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Suraj Estate Developers Business Description

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Traded in Other Exchanges
Address
Veer Savarkar Marg, 301, 3rd Floor, Aman Chambers, Opposite Bengal Chemicals, Prabhadevi, Mumbai, MH, IND, 400025
Suraj Estate Developers Ltd is involved in the real estate business. It develops real estate across the residential and commercial sectors in the South Central Mumbai region. The Company is principally engaged in the development of real estate in India which includes the development and sale of residential and commercial premises. The company generates all of its revenue within India. The company's projects include Suraj Emmanuel, Ocean Star, Suraj Lumina, The Palette, Louisandra, Ave Maria, Nirvana, Vitalis, Park View, and Eterna.

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