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SVUHF (SRIVARU Holding) ROIC % : -1,288.91% (As of Mar. 2024)


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What is SRIVARU Holding 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 %. SRIVARU Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -1,288.91%.

As of today (2025-03-15), SRIVARU Holding's WACC % is 9.91%. SRIVARU Holding's ROIC % is -1288.88% (calculated using TTM income statement data). SRIVARU Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.


SRIVARU Holding ROIC % Historical Data

The historical data trend for SRIVARU Holding'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.

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SRIVARU Holding ROIC % Chart

SRIVARU Holding Annual Data
Trend Mar22 Mar23 Mar24
ROIC %
- -53.49 -1,288.91

SRIVARU Holding Semi-Annual Data
Mar22 Mar23 Mar24
ROIC % - -53.49 -1,288.91

Competitive Comparison of SRIVARU Holding's ROIC %

For the Auto Manufacturers subindustry, SRIVARU Holding'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.


SRIVARU Holding's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, SRIVARU Holding's ROIC % distribution charts can be found below:

* The bar in red indicates where SRIVARU Holding's ROIC % falls into.



SRIVARU Holding ROIC % Calculation

SRIVARU Holding'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 )
=-11.4 * ( 1 - -0.23% )/( (1.254 + 0.519)/ 2 )
=-11.42622/0.8865
=-1,288.91 %

where

SRIVARU Holding's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-11.4 * ( 1 - -0.23% )/( (1.254 + 0.519)/ 2 )
=-11.42622/0.8865
=-1,288.91 %

where

Note: The Operating Income data used here is one times the annual (Mar. 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.


SRIVARU Holding  (OTCPK:SVUHF) 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, SRIVARU Holding's WACC % is 9.91%. SRIVARU Holding's ROIC % is -1288.88% (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.


SRIVARU Holding ROIC % Related Terms

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SRIVARU Holding Business Description

Traded in Other Exchanges
N/A
Address
West Bay Road, P.O. Box 10655, 2nd floor, Regatta Office park, Grand Cayman, CYM, KY1-1106
SRIVARU Holding Ltd focuses to revolutionize two-wheeled vehicles (TWV) by developing products powered by renewable energy, which are assured for safety, performance, and comfort, thereby providing safe riding experience to its customers. It operates in one reportable segment which is vehicle manufacturing. SVH's first product line, the Prana, is a E2W vehicle that is redefining the category. SVH has commenced engineering and design work for the Prana-Elite that is expected to leverage the same platform as the Prana-Grand, while upgrading its range.