VRTU  Virtusa Corporation

Exchange

NASDAQ

Sector

Technology

Industry

EDP Services

Market Cap.

656.5M

Poor Cash Return on Invested Capital over the past 5 years

VRTU has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

VRTU has only created $9.64 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20082009201020112012
Free Cash Flow 914,000.00 15.42M 14.54M 10.05M 7.36M
divided by
Invested Capital 75.63M 76.68M 113.30M 114.48M 140.18M
Cash ROIC 1.21% 20.11% 12.83% 8.78% 5.25%

Poor Return on Equity over the past 5 years

VRTU has shown an inability to deliver strong results for shareholders. This could be due to poor management, VRTU operating in a highly competitive industry, or having a weak business in general.

VRTU has only generated $8.59 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20082009201020112012
Net Income 17.77M 12.06M 12.13M 16.20M 20.04M
divided by
Stockholders' Equity 155.83M 152.59M 181.79M 207.34M 218.17M
Return on Equity 11.40% 7.90% 6.67% 7.81% 9.18%

Good Business Performance over the past 10 years

It's likely VRTU has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is VRTU has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

VRTU has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in March
2003200420052006200720082009201020112012
Free Cash Flow - - - 463,000.00 5.13M 914,000.00 15.42M 14.54M 10.05M 7.36M