Globus Power Generation (BOM:526025) ROIC % : -6.31% (As of Mar. 2024)

View and export this data going back to 1993. Start your Free Trial

What is Globus Power Generation 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 %. Globus Power Generation's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -6.31%.

As of today (2024-05-25), Globus Power Generation's WACC % is 32.17%. Globus Power Generation's ROIC % is -4.96% (calculated using TTM income statement data). Globus Power Generation earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Globus Power Generation ROIC % Historical Data

The historical data trend for Globus Power Generation'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.

* Premium members only.

Globus Power Generation ROIC % Chart

Globus Power Generation Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROIC %

Get a 7-Day Free Trial

-1.93

-75.20

-7.87

-2.72

-5.23

Globus Power Generation 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															-4.81	-6.28	-3.50	-3.69	-6.31

Competitive Comparison of Globus Power Generation's ROIC %

For the Utilities - Renewable subindustry, Globus Power Generation'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.

Globus Power Generation's ROIC % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Globus Power Generation's ROIC % distribution charts can be found below:

* The bar in red indicates where Globus Power Generation's ROIC % falls into.

Globus Power Generation ROIC % Calculation

Globus Power Generation'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 )
=	-5.65 * ( 1 - 0% )	/	( (119.973	+	96.263)	/ 2 )
=	-5.65	/	108.118
=	-5.23 %

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	))
=	120.363	-	0.967	-	( 0.316	-	max(0, 0.967	-	0.39	+	0.316	))
=	119.973

	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	))
=	95.963	-	0	-	( 0.385	-	max(0, 0.868	-	0.568	+	0.385	))
=	96.263

Globus Power Generation'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 )
=	-6.076 * ( 1 - 0% )	/	( (0	+	96.263)	/ 1 )
=	-6.076	/	96.263
=	-6.31 %

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	))
=	95.963	-	0	-	( 0.385	-	max(0, 0.868	-	0.568	+	0.385	))
=	96.263

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

Globus Power Generation (BOM:526025) 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, Globus Power Generation's WACC % is 32.17%. Globus Power Generation's ROIC % is -4.96% (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.

Globus Power Generation ROIC % Related Terms

Thank you for viewing the detailed overview of Globus Power Generation's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Globus Power Generation (BOM:526025) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Globus Power Generation Ltd (BOM:526025) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Naraina Industrial Area, A-60, Phase-I, New Delhi, UP, IND, 110028

Website

http://www.gpgl.in

Globus Power Generation Ltd is a company engaged in the business of making investments in the infrastructure sector particularly power generation business and acquisition of wind/biomass/solar power plants. It is also involved in investing in other securities, derivatives, mutual funds, and properties. It offers an alternative revelation to conventional sources, such as coal and gasoline. It is involved in the sale of biomass fuel in the line of activity of power generation.

Globus Power Generation (BOM:526025) Headlines

No Headlines