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Sungarner Energies (NSE:SEL) ROIC % : 11.17% (As of Mar. 2023)


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What is Sungarner Energies 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 %. Sungarner Energies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was 11.17%.

As of today (2024-06-08), Sungarner Energies's WACC % is 12.86%. Sungarner Energies's ROIC % is 11.17% (calculated using TTM income statement data). Sungarner Energies earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Sungarner Energies ROIC % Historical Data

The historical data trend for Sungarner Energies'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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Sungarner Energies ROIC % Chart

Sungarner Energies Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROIC %
4.47 7.00 15.69 11.17

Sungarner Energies Semi-Annual Data
Mar20 Mar21 Mar22 Mar23
ROIC % 4.47 7.00 15.69 11.17

Competitive Comparison of Sungarner Energies's ROIC %

For the Electrical Equipment & Parts subindustry, Sungarner Energies'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.


Sungarner Energies's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sungarner Energies's ROIC % distribution charts can be found below:

* The bar in red indicates where Sungarner Energies's ROIC % falls into.



Sungarner Energies ROIC % Calculation

Sungarner Energies'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 )
=11.52 * ( 1 - 38.54% )/( (43.387 + 83.417)/ 2 )
=7.080192/63.402
=11.17 %

where

Sungarner Energies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

ROIC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=11.52 * ( 1 - 38.54% )/( (43.387 + 83.417)/ 2 )
=7.080192/63.402
=11.17 %

where

Note: The Operating Income data used here is one times the annual (Mar. 2023) 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.


Sungarner Energies  (NSE:SEL) 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, Sungarner Energies's WACC % is 12.86%. Sungarner Energies's ROIC % is 11.17% (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.


Sungarner Energies ROIC % Related Terms

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Sungarner Energies (NSE:SEL) Business Description

Traded in Other Exchanges
N/A
Address
Plot No. 113, Udyog Kendra-II, Gautam Budh Nagar, Greater Noida, UP, IND, 201306
Sungarner Energies Ltd offers a wide range of power solutions. It is engaged in the manufacturing, design, and engineering of Power Equipments and Appliances such as Online UPS, Solar Inverters, EV Chargers, Storage Solutions ( Lead Acid and Lithium-ion), Solar Equipment, and Installation and Commissioning of Solar Power Plants.

Sungarner Energies (NSE:SEL) Headlines

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