Future Retail ROIC
What is the ROIC of Future Retail?
The ROIC of Future Retail Limited is -9.48%
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 Consumer Discretionary sector on NSE compared to Future Retail
What does Future Retail do?
Future Retail Limited engages in retailing fashion, household, food, and consumer products in India. The company operates hypermarkets under the Big Bazaar and Big Bazaar GEN NXT brands; supermarkets under the HyperCity and foodworld brands; neighborhood food and grocery stores under the Easyday Club and Heritage Fresh brand names; fashion stores under the fbb brand; lifestyle food superstore under the Foodhall brand; and travel convenience stores under the WH Smith brand. It also operates lifestyle consumer electronics stores under the name eZone brand name. As of March 31, 2021, the company operated 1,308 stores comprising 285 Big Bazaar/ Hypercity stores, 88 fbb stores, 8 Foodhall, and 927 small format stores. The company was formerly known as Bharti Retail Limited and changed its name to Future Retail Limited in May 2016. Future Retail Limited was incorporated in 2007 and is based in Mumbai, India.
Companies with roic similar to Future Retail
- Nova Royalty has ROIC of -9.52%
- OBITX has ROIC of -9.51%
- Atlas has ROIC of -9.50%
- Superior Gold has ROIC of -9.50%
- European Lithium has ROIC of -9.49%
- NAOS Small Cap Opportunities has ROIC of -9.49%
- Future Retail has ROIC of -9.48%
- Gevo Inc has ROIC of -9.48%
- Pluralsight Inc has ROIC of -9.48%
- Top 10 Canadian Trust has ROIC of -9.47%
- British American Tobacco Plc has ROIC of -9.47%
- Castillo Copper has ROIC of -9.47%
- Orea Mining Corp has ROIC of -9.47%