5paisa Capital (BOM:540776) ROC % : -19.56% (As of Mar. 2024)

View and export this data going back to 2017. Start your Free Trial

What is 5paisa Capital ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 5paisa Capital's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -19.56%.

As of today (2024-06-10), 5paisa Capital's WACC % is 10.96%. 5paisa Capital's ROC % is -3.68% (calculated using TTM income statement data). 5paisa Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.

5paisa Capital ROC % Historical Data

The historical data trend for 5paisa Capital's ROC % 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.

5paisa Capital ROC % Chart

5paisa Capital Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

-4.40

-0.83

-2.78

-1.27

-2.88

5paisa Capital Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-0.84	-0.73	-1.85	-7.82	-19.56

5paisa Capital ROC % Calculation

5paisa Capital's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-346.755 * ( 1 - 24.52% )	/	( (14946.64	+	3248.84)	/ 2 )
=	-261.730674	/	9097.74
=	-2.88 %

where

	Invested Capital		(A: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	16416.29	-	11.72	-	( 1457.93	-	max(0, 11776.95	-	15494.97	+	1457.93	))
=	14946.64

	Invested Capital		(A: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20478.53	-	856.14	-	( 16373.55	-	max(0, 856.14	-	18141.11	+	16373.55	))
=	3248.84

5paisa Capital's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-837.884 * ( 1 - 24.14% )	/	( (0	+	3248.84)	/ 1 )
=	-635.6188024	/	3248.84
=	-19.56 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	20478.53	-	856.14	-	( 16373.55	-	max(0, 856.14	-	18141.11	+	16373.55	))
=	3248.84

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

5paisa Capital (BOM:540776) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, 5paisa Capital's WACC % is 10.96%. 5paisa Capital's ROC % is -3.68% (calculated using TTM income statement data). 5paisa Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

5paisa Capital ROC % Related Terms

Thank you for viewing the detailed overview of 5paisa Capital's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

5paisa Capital (BOM:540776) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » 5paisa Capital Ltd (BOM:540776) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

5PAISA:India

Address

Road Number 16V, MIDC, Thane Industrial Area, Sun Infotech Park, Plot Number B - 23, IIFL House, Wagle Estate, Thane, MH, IND, 400604

Website

https://www.5paisa.com

5paisa Capital Ltd is an online financial services provider. The company provides a wide range of financial services to its customers including stock broking services, depository services, distribution of mutual funds, bonds and debentures, equity and mutual fund research through its technology-based platforms. Its business is to provide broking services, to its clients, in the capital markets in India. The company has launched peer-to-peer lending (P2P) via its website 5paisaloans.com and mobile app 5Paisa Loans. P2P is aimed at offering investors yet another investment option to diversify their portfolio and secure higher returns.

5paisa Capital (BOM:540776) Headlines

No Headlines