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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 %. Riyal Investment And Development Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.80%.
As of today (2026-08-11), Riyal Investment And Development Co's WACC % is 11.82%. Riyal Investment And Development Co's ROIC % is 5.33% (calculated using TTM income statement data).
Riyal Investment And Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Riyal Investment And Development Co (SAU:9584) 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, Riyal Investment And Development Co's WACC % is 11.82%. Riyal Investment And Development Co's ROIC % is 5.33% (calculated using TTM income statement data).
Riyal Investment And Development Co 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.
Riyal Investment And Development Co ROIC % Related Terms
Riyal Investment And Development Co 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.
Riyal Investment And Development Co ROIC % Chart
Riyal Investment And Development Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROIC %
8.20
8.23
8.50
5.28
Riyal Investment And Development Co Semi-Annual Data
For the Rental & Leasing Services subindustry, Riyal Investment And Development Co'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.
Riyal Investment And Development Co ROIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Riyal Investment And Development Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Riyal Investment And Development Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Riyal Investment And Development Co (SAU:9584) has a ROIC % of 3.80% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Riyal Investment And Development Co and its competitors.
Is Riyal Investment And Development Co's ROIC % too high?
Riyal Investment And Development Co's current ROIC % is 3.80%. The Business Services industry median ROIC % is 6.11. Riyal Investment And Development Co's value of 3.80% is 37.8% below this industry median. Overall, Riyal Investment And Development Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Riyal Investment And Development Co's ROIC % compare to URI and SUNB?
Riyal Investment And Development Co's ROIC % of 3.80% can be compared against companies in the Business Services industry. The industry median ROIC % is 6.11. Riyal Investment And Development Co's value of 3.80% is 37.8% below 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 a Business Services company?
The median ROIC % among Business Services companies is 6.11, based on 1,072 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. Riyal Investment And Development Co's current ROIC % of 3.80% is 37.8% below 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 Riyal Investment And Development Co and its competitors. For the Business Services industry, the median ROIC % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riyal Investment And Development Co's current ROIC % is 3.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riyal Investment And Development Co stock overvalued right now?
Riyal Investment And Development Co (SAU:9584) has a current ROIC % of 3.80%. The current ROIC % is 3.80% and 37.8% below the Business Services industry median of 6.11. Riyal Investment And Development Co's overall GF Score™ is 16/100 with 5 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 Riyal Investment And Development Co (SAU:9584), the current ROIC % is 3.80% as of Dec. 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.
Riyal Investment And Development Co is engaged in leasing vehicles and buses, trading activities (export, import, brokerage, and marketing for others) in the non-money exchange business, establishing and operating workshops for vehicles, equipment, wholesale and retail sales and export and import in vehicles spare parts and wheels. It has two segments; Lease of Vehicles and Sale of Vehicles. The company derives maximum revenue from the lease of vehicles segment.
16GF Score
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