Photon Capital Advisors (BOM:509084) ROC % : -4.99% (As of Sep. 2024)

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What is Photon Capital Advisors 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 %. Photon Capital Advisors's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -4.99%.

As of today (2024-12-13), Photon Capital Advisors's WACC % is 5.37%. Photon Capital Advisors's ROC % is 57.36% (calculated using TTM income statement data). Photon Capital Advisors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Photon Capital Advisors ROC % Historical Data

The historical data trend for Photon Capital Advisors'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.

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Photon Capital Advisors ROC % Chart

Photon Capital Advisors Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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-3.77

-28.16

-0.62

-4.70

46.17

Photon Capital Advisors Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-2.61	-10.66	29.99	-10.74	-4.99

Photon Capital Advisors ROC % Calculation

Photon Capital Advisors'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 )
=	-3.293 * ( 1 - 831.86% )	/	( (60.206	+	44.183)	/ 2 )
=	24.1001498	/	52.1945
=	46.17 %

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	))
=	102.669	-	0.307	-	( 42.156	-	max(0, 0.325	-	42.929	+	42.156	))
=	60.206

	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	))
=	83.312	-	0.324	-	( 38.805	-	max(0, 0.605	-	39.523	+	38.805	))
=	44.183

Photon Capital Advisors's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-2.304 * ( 1 - 0% )	/	( (0	+	46.155)	/ 1 )
=	-2.304	/	46.155
=	-4.99 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Sep. 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	))
=	83.584	-	0	-	( 37.429	-	max(0, 0.377	-	38.213	+	37.429	))
=	46.155

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

Photon Capital Advisors (BOM:509084) 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, Photon Capital Advisors's WACC % is 5.37%. Photon Capital Advisors's ROC % is 57.36% (calculated using TTM income statement data). Photon Capital Advisors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Photon Capital Advisors ROC % Related Terms

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Photon Capital Advisors Business Description

Industry

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Address

Road No. 9, Jubilee Hills, Plot No. 90-A, Hyderabad, TG, IND, 500 033

Website

https://www.pcalindia.com

Photon Capital Advisors Ltd is an adviser to hedge funds, family offices, high net worth individuals, and investment partnerships that invest in India. It aims to generate superior returns by guiding investments across asset classes including equities, equity derivatives, index derivatives, debt, commodities, and real estate. The company also manages proprietary funds which are presently closed to external investors. The company generates maximum revenue from the sale of Investments.

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