CSL Finance (BOM:530067) ROC % : 7.00% (As of Dec. 2024)

View and export this data going back to 1995. Start your Free Trial

What is CSL Finance 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 %. CSL Finance's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 7.00%.

As of today (2025-04-02), CSL Finance's WACC % is 8.91%. CSL Finance's ROC % is 8.24% (calculated using TTM income statement data). CSL Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CSL Finance ROC % Historical Data

The historical data trend for CSL Finance'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.

CSL Finance ROC % Chart

CSL Finance Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

8.19

9.57

8.20

7.43

7.75

CSL Finance Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															8.26	8.01	8.86	7.50	7.00

CSL Finance ROC % Calculation

CSL Finance'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 )
=	871.128 * ( 1 - 25.98% )	/	( (7353.136	+	9283.381)	/ 2 )
=	644.8089456	/	8318.2585
=	7.75 %

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	))
=	7787.409	-	30.623	-	( 403.65	-	max(0, 2005.964	-	3115.049	+	403.65	))
=	7353.136

	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	))
=	9853.32	-	32.844	-	( 540.871	-	max(0, 2200.317	-	2737.412	+	540.871	))
=	9283.381

CSL Finance's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	979.456 * ( 1 - 25.63% )	/	( (10402.116	+	0)	/ 1 )
=	728.4214272	/	10402.116
=	7.00 %

where

	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	))
=	10952.405	-	23.164	-	( 527.125	-	max(0, 23.164	-	10816.921	+	527.125	))
=	10402.116

	Invested Capital		(Q: Dec. 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

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

CSL Finance (BOM:530067) 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, CSL Finance's WACC % is 8.91%. CSL Finance's ROC % is 8.24% (calculated using TTM income statement data). CSL Finance 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.

CSL Finance ROC % Related Terms

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

CSL Finance Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » CSL Finance Ltd (BOM:530067) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CSLFINANCE:India

Address

World Trade Tower, 716-717, 7th Floor, Tower B, Sector 16, Noida, UP, IND, 201301

Website

https://www.cslfinance.in

CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.

CSL Finance Headlines

No Headlines