Jay Jalaram Technologies (NSE:KORE) ROIC % : 4.52% (As of Sep. 2023)

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What is Jay Jalaram Technologies 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 %. Jay Jalaram Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 4.52%.

As of today (2024-05-16), Jay Jalaram Technologies's WACC % is 12.86%. Jay Jalaram Technologies's ROIC % is 7.37% (calculated using TTM income statement data). Jay Jalaram Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jay Jalaram Technologies ROIC % Historical Data

The historical data trend for Jay Jalaram Technologies'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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Jay Jalaram Technologies ROIC % Chart

Jay Jalaram Technologies Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

6.33

1.93

2.54

6.47

9.56

Jay Jalaram Technologies Semi-Annual Data
	Mar19	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial			7.86	5.36	6.62	12.16	4.52

Competitive Comparison of Jay Jalaram Technologies's ROIC %

For the Internet Retail subindustry, Jay Jalaram Technologies'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.

Jay Jalaram Technologies's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Jay Jalaram Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where Jay Jalaram Technologies's ROIC % falls into.

Jay Jalaram Technologies ROIC % Calculation

Jay Jalaram Technologies'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 )
=	54.911 * ( 1 - 31.05% )	/	( (270.864	+	521.597)	/ 2 )
=	37.8611345	/	396.2305
=	9.56 %

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	))
=	498.448	-	181.586	-	( 45.998	-	max(0, 201.95	-	409.113	+	45.998	))
=	270.864

	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	))
=	811.365	-	188.326	-	( 101.442	-	max(0, 312.906	-	716.777	+	101.442	))
=	521.597

Jay Jalaram Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	37.158 * ( 1 - 20.74% )	/	( (521.597	+	780.825)	/ 2 )
=	29.4514308	/	651.211
=	4.52 %

where

	Invested Capital		(Q: 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	))
=	811.365	-	188.326	-	( 101.442	-	max(0, 312.906	-	716.777	+	101.442	))
=	521.597

	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	))
=	1144.984	-	304.566	-	( 59.593	-	max(0, 536.219	-	1047.883	+	59.593	))
=	780.825

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Jay Jalaram Technologies (NSE:KORE) 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, Jay Jalaram Technologies's WACC % is 12.86%. Jay Jalaram Technologies's ROIC % is 7.37% (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.

Jay Jalaram Technologies ROIC % Related Terms

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Jay Jalaram Technologies (NSE:KORE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Jay Jalaram Technologies Ltd (NSE:KORE) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Shilp Char Rasta, C. G. Road, Office No.103, Shail Mall, B/H. Girish Cold Drink, Navrangpura, Ahmedabad, GJ, IND, 380009

Website

https://www.koremobiles.com

Jay Jalaram Technologies Ltd is engaged in multi-brand retail selling of smartphones and allied accessories from manufacturers like Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Nokia, Redmi, Techno, One Plus, and Xiaomi. It is also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, Coolers, etc. from brands like TCL, Haier, Daikin, Voltas, Mi, Realme, OnePlus, Xiaomi, and Skytron. The company operates under the brand name Kore Mobile. The company operates in two segments; Electronic Gadgets and Electric Vehicles. The Majority of revenue is derived from the Trading of the Electronic Gadgets Segment.