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Uniinfo Telecom Services (NSE:UNIINFO) ROIC % : 4.52% (As of Sep. 2023)


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

As of today (2024-05-19), Uniinfo Telecom Services's WACC % is 5.86%. Uniinfo Telecom Services's ROIC % is 5.62% (calculated using TTM income statement data). Uniinfo Telecom Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Uniinfo Telecom Services ROIC % Historical Data

The historical data trend for Uniinfo Telecom Services'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.

Uniinfo Telecom Services ROIC % Chart

Uniinfo Telecom Services Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.57 2.26 -9.05 -6.23 2.46

Uniinfo Telecom Services Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -21.58 41.47 -1.57 6.74 4.52

Competitive Comparison of Uniinfo Telecom Services's ROIC %

For the Telecom Services subindustry, Uniinfo Telecom Services'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.


Uniinfo Telecom Services's ROIC % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Uniinfo Telecom Services's ROIC % distribution charts can be found below:

* The bar in red indicates where Uniinfo Telecom Services's ROIC % falls into.



Uniinfo Telecom Services ROIC % Calculation

Uniinfo Telecom Services'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 )
=11.633 * ( 1 - 20.61% )/( (369.979 + 382.32)/ 2 )
=9.2354387/376.1495
=2.46 %

where

Uniinfo Telecom Services'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 )
=19.202 * ( 1 - 8.77% )/( (382.32 + 393.164)/ 2 )
=17.5179846/387.742
=4.52 %

where

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


Uniinfo Telecom Services  (NSE:UNIINFO) 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, Uniinfo Telecom Services's WACC % is 5.86%. Uniinfo Telecom Services's ROIC % is 5.62% (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.


Uniinfo Telecom Services ROIC % Related Terms

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Uniinfo Telecom Services (NSE:UNIINFO) Business Description

Traded in Other Exchanges
N/A
Address
12/2 RNT Marg, No.403, Chetak Centre, Indore, MP, IND, 452001
Uniinfo Telecom Services Ltd provides telecom services to the telecom industry ranging from telecom equipment manufacturers (OEM's) to telecom operators and IT services providers. The company offers support services solutions to address the Network Life Cycle requirements of the telecom industry. Its services include Network Survey, Planning, Installation and Commissioning, Network Testing and Optimization, Managed Services, In building Solutions & WiFi, and others.

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