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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vivid Electromech's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 31.75%.
As of today (2026-08-09), Vivid Electromech's WACC % is 12.96%. Vivid Electromech's ROIC % is 15.88% (calculated using TTM income statement data).
Vivid Electromech 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, Vivid Electromech's WACC % is 12.96%. Vivid Electromech's ROIC % is 15.88% (calculated using TTM income statement data).
Vivid Electromech 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.
Vivid Electromech ROIC % Related Terms
Vivid Electromech ROIC % Historical Data
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The historical data trend for Vivid Electromech'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.
Vivid Electromech ROIC % Chart
Vivid Electromech Annual Data
Trend
Mar23
Mar24
Mar25
ROIC %
2.81
12.98
47.55
Vivid Electromech Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
ROIC %
0.00
0.00
0.00
31.75
NSE:VIVIDEL vs VRT, BE: ROIC % Comparison
For the Electrical Equipment & Parts subindustry, Vivid Electromech'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.
Vivid Electromech ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vivid Electromech's ROIC % distribution charts can be found below:
* The bar in red indicates where Vivid Electromech's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Vivid Electromech (NSE:VIVIDEL) has a ROIC % of 31.75% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Vivid Electromech and its competitors.
Is Vivid Electromech's ROIC % too high?
Vivid Electromech's current ROIC % is 31.75%. The Industrial Products industry median ROIC % is 5.22. Vivid Electromech's value of 31.75% is 508.8% above this industry median. Overall, Vivid Electromech has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Vivid Electromech's ROIC % compare to VRT and BE?
Vivid Electromech's ROIC % of 31.75% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.22. Vivid Electromech's value of 31.75% is 508.8% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.22, based on 3,030 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. Vivid Electromech's current ROIC % of 31.75% is 508.8% 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 Vivid Electromech and its competitors. For the Industrial Products industry, the median ROIC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vivid Electromech's current ROIC % is 31.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vivid Electromech stock overvalued right now?
Vivid Electromech (NSE:VIVIDEL) has a current ROIC % of 31.75%. The current ROIC % is 31.75% and 508.8% above the Industrial Products industry median of 5.22. Vivid Electromech's overall GF Score™ is 18/100 with 6 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 Vivid Electromech (NSE:VIVIDEL), the current ROIC % is 31.75% as of Sep. 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.
Vivid Electromech Ltd is engaged in panel manufacturing and system integration, offering electrical and automation solutions that cover engineering, design, fabrication, assembly, testing, and commissioning of control and automation systems. Its product portfolio includes LV electrical panels, including Power Control Centre Panels, Intelligent Motor Control Centre Panels, Soft Starter Panels, Motor Control Centre Panels, DG Synchronisation Panels, Power Distribution Boards and Units, Automatic Power Factor Correction Panels, etc. Its products are used for applications in power distribution, load management, process control, and industrial automation across multiple sectors. The majority of the company's revenue is derived from the sale of its products, mainly from LV Panels.
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