Reliance Communications ROIC
What is the ROIC of Reliance Communications?
The ROIC of Reliance Communications Limited is -0.91%
What is the definition of ROIC?
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
ROIC of companies in the Communication Services sector on BSE compared to Reliance Communications
What does Reliance Communications do?
Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally. It offers business Internet, network, cloud networking, data center, enterprise voice, cloud telephony, and access number services; and collaboration services, which include audio and Web conferencing, as well as voice and various value-added wholesaling services for carriers and service providers. The company also builds, owns, and operates telecommunication towers, optic fiber cable assets, and related assets. In addition, it offers infrastructure and connectivity, and managed services. The company was formerly known as Reliance Communication Ventures Limited and changed its name to Reliance Communications Limited in June 2006. Reliance Communications Limited was incorporated in 2004 and is based in Navi Mumbai, India.
Companies with roic similar to Reliance Communications
- Calamos Convertible and High Income Fund has ROIC of -0.93%
- GTL Infrastructure has ROIC of -0.92%
- Jetblue Airways Corp has ROIC of -0.92%
- Banimmo SA has ROIC of -0.92%
- Jaws Acquisition has ROIC of -0.92%
- Wuhan General (China) has ROIC of -0.92%
- Reliance Communications has ROIC of -0.91%
- Central Puerto has ROIC of -0.91%
- RTW Venture Fund has ROIC of -0.91%
- DCT Industrial Trust has ROIC of -0.91%
- Protech Home Medical has ROIC of -0.90%
- TMAC Resources has ROIC of -0.90%
- AURELIUS Equity Opportunities SE & Co. KGaA has ROIC of -0.90%