PTC India Financial Services (BOM:533344) ROIC % : 2.94% (As of Dec. 2023)

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What is PTC India Financial Services ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PTC India Financial Services's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.94%.

As of today (2024-05-20), PTC India Financial Services's WACC % is 4.94%. PTC India Financial Services's ROIC % is 2.28% (calculated using TTM income statement data). PTC India Financial Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PTC India Financial Services ROIC % Historical Data

The historical data trend for PTC India Financial Services's ROIC % 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.

PTC India Financial Services ROIC % Chart

PTC India Financial Services Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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1.19

1.40

0.72

2.38

2.56

PTC India Financial Services Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															2.83	1.94	3.50	2.90	2.94

Competitive Comparison of PTC India Financial Services's ROIC %

For the Credit Services subindustry, PTC India Financial Services's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

PTC India Financial Services's ROIC % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, PTC India Financial Services's ROIC % distribution charts can be found below:

* The bar in red indicates where PTC India Financial Services's ROIC % falls into.

PTC India Financial Services ROIC % Calculation

PTC India Financial Services's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	2661.097 * ( 1 - 24.34% )	/	( (84628.676	+	72638.333)	/ 2 )
=	2013.3859902	/	78633.5045
=	2.56 %

where

	Invested Capital		(A: Mar. 2022 )
=	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	))
=	95163.3	-	17.631	-	( 11761.549	-	max(0, 22275.983	-	32792.976	+	11761.549	))
=	84628.676

	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	))
=	76343.982	-	18.633	-	( 5898.731	-	max(0, 12709.795	-	16396.811	+	5898.731	))
=	72638.333

PTC India Financial Services's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2699.26 * ( 1 - 25.36% )	/	( (68439.435	+	0)	/ 1 )
=	2014.727664	/	68439.435
=	2.94 %

where

	Invested Capital		(Q: Sep. 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	))
=	73610.554	-	17.22	-	( 5153.899	-	max(0, 17.22	-	71825.56	+	5153.899	))
=	68439.435

	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

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

PTC India Financial Services (BOM:533344) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, PTC India Financial Services's WACC % is 4.94%. PTC India Financial Services's ROIC % is 2.28% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

PTC India Financial Services ROIC % Related Terms

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PTC India Financial Services (BOM:533344) Business Description

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PFS:India

Address

8 Bhikaji Cama Place, 7th Floor, Telephone Exchange Building, New Delhi, IND, 110 066

Website

https://www.ptcfinancial.com

PTC India Financial Services Ltd provides total financial services to the entities in the energy value chain, which inter-alia includes investing in equity and extending debt to power projects in generation, transmission, distribution, fuel sources, fuel-related infrastructures like gas pipelines, LNG terminals, ports, equipment manufacturers, and EPC contractors. The company also provides non-fund-based financial services adding value to greenfield and brownfield projects at various stages of growth and development. The company is an India-based Non-Banking Financial company.

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