The Shipping of India (BOM:523598) ROIC % : 3.63% (As of Mar. 2024)

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What is The Shipping of India 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 %. The Shipping of India's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 3.63%.

As of today (2024-06-06), The Shipping of India's WACC % is 10.35%. The Shipping of India's ROIC % is 4.71% (calculated using TTM income statement data). The Shipping of India earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Shipping of India ROIC % Historical Data

The historical data trend for The Shipping of India'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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The Shipping of India ROIC % Chart

The Shipping of India Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

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4.10

3.81

7.44

8.63

5.58

The Shipping of India Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															0.21	6.20	1.69	5.91	3.63

Competitive Comparison of The Shipping of India's ROIC %

For the Marine Shipping subindustry, The Shipping of India'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.

The Shipping of India's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, The Shipping of India's ROIC % distribution charts can be found below:

* The bar in red indicates where The Shipping of India's ROIC % falls into.

The Shipping of India ROIC % Calculation

The Shipping of India'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 )
=	5332.9 * ( 1 - -5.22% )	/	( (100966.8	+	100317.9)	/ 2 )
=	5611.27738	/	100642.35
=	5.58 %

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	))
=	114429.8	-	14481.5	-	( 7060.2	-	max(0, 27922.2	-	26903.7	+	7060.2	))
=	100966.8

	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	))
=	120999	-	13354.6	-	( 18189	-	max(0, 29162.1	-	36488.6	+	18189	))
=	100317.9

The Shipping of India'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: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	2832.8 * ( 1 - -28.54% )	/	( (0	+	100317.9)	/ 1 )
=	3641.28112	/	100317.9
=	3.63 %

where

	Invested Capital		(Q: Dec. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: 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	))
=	120999	-	13354.6	-	( 18189	-	max(0, 29162.1	-	36488.6	+	18189	))
=	100317.9

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

The Shipping of India (BOM:523598) 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, The Shipping of India's WACC % is 10.35%. The Shipping of India's ROIC % is 4.71% (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.

The Shipping of India ROIC % Related Terms

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The Shipping of India (BOM:523598) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » The Shipping Corp of India Ltd (BOM:523598) » Definitions » ROIC %

Traded in Other Exchanges

SCI:India

Address

245, Madame Cama Road, Shipping House, Nariman Point, Mumbai, MH, IND, 400021

Website

http://www.shipindia.com

The Shipping Corp of India Ltd is engaged in the sea and coastal freight water transport business. The company's segments include Liner, Bulk, Tanker, Technical and Offshore service, and others. Its Liner segment includes break-bulk, container transport, passenger and research vessels. The Bulk segment consists of dry bulk carriers. The tankers segment that derives the majority revenue comprises of crude and product carriers, gas carriers, and phosphoric acid carriers. The company's Technical and Offshore services segment covers owned offshore vessels and the others segment incorporates income earned from the maritime training institute. Its business operations are confined only to India.

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