India Tourism Development (BOM:532189) ROIC % : 11.76% (As of Dec. 2023)

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What is India Tourism Development 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 %. India Tourism Development's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 11.76%.

As of today (2024-05-11), India Tourism Development's WACC % is 12.47%. India Tourism Development's ROIC % is 11.22% (calculated using TTM income statement data). India Tourism Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

India Tourism Development ROIC % Historical Data

The historical data trend for India Tourism Development'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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India Tourism Development ROIC % Chart

India Tourism Development Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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7.99

4.76

-19.84

-0.95

12.12

India Tourism Development Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															13.21	9.57	10.60	13.47	11.76

Competitive Comparison of India Tourism Development's ROIC %

For the Lodging subindustry, India Tourism Development'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.

India Tourism Development's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, India Tourism Development's ROIC % distribution charts can be found below:

* The bar in red indicates where India Tourism Development's ROIC % falls into.

India Tourism Development ROIC % Calculation

India Tourism Development's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	688.856 * ( 1 - 30.61% )	/	( (2491.614	+	5395.132)	/ 2 )
=	477.9971784	/	3943.373
=	12.12 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	5841.881	-	1185.47	-	( 2213.301	-	max(0, 2541.157	-	4705.954	+	2213.301	))
=	2491.614

	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	))
=	9337.469	-	1661.454	-	( 2280.883	-	max(0, 5448.996	-	8278.95	+	2280.883	))
=	5395.132

India Tourism Development's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	836.148 * ( 1 - 29.26% )	/	( (5031.051	+	0)	/ 1 )
=	591.4910952	/	5031.051
=	11.76 %

where

	Invested Capital		(Q: Sep. 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	))
=	8735.051	-	861.318	-	( 2984.94	-	max(0, 4862.875	-	7705.557	+	2984.94	))
=	5031.051

	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

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

India Tourism Development (BOM:532189) 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, India Tourism Development's WACC % is 12.47%. India Tourism Development's ROIC % is 11.22% (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.

India Tourism Development ROIC % Related Terms

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India Tourism Development (BOM:532189) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » India Tourism Development Corp Ltd (BOM:532189) » Definitions » ROIC %

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ITDC:India

Address

7 Lodi Road, Scope Complex, Core 8, 6th Floor, New Delhi, IND, 110003

Website

https://www.itdc.co.in

India Tourism Development Corp Ltd operates in the hotel industry. The company's operating segment includes Hotel/Restaurant Operations; Duty Free Shops Operations; Travel and Tour Operations; Ashok Events and Misc. Operations; Construction, Consultancy and SEL Projects and Others. It generates maximum revenue from the Hotel/Restaurant Operations segment.

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