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Examining Vaibhav Global Limited's (NSE:VAIBHAVGBL) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess VAIBHAVGBL's latest performance announced on 31 March 2019 and weigh these figures against its longer term trend and industry movements.

See our latest analysis for Vaibhav Global

Did VAIBHAVGBL's recent earnings growth beat the long-term trend and the industry?

VAIBHAVGBL's trailing twelve-month earnings (from 31 March 2019) of ₹1.5b has jumped 37% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.5%, indicating the rate at which VAIBHAVGBL is growing has accelerated. What's enabled this growth? Let's take a look at if it is merely owing to an industry uplift, or if Vaibhav Global has experienced some company-specific growth.

In terms of returns from investment, Vaibhav Global has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the IN Luxury industry of 6.3%, indicating Vaibhav Global has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Vaibhav Global’s debt level, has increased over the past 3 years from 12% to 28%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 53% to 9.5% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Vaibhav Global has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Vaibhav Global to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for VAIBHAVGBL’s future growth? Take a look at our free research report of analyst consensus for VAIBHAVGBL’s outlook.

2. Financial Health: Are VAIBHAVGBL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.