Cyient DLM (BOM:543933) ROC % : 7.70% (As of Sep. 2024)

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What is Cyient DLM 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 %. Cyient DLM's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 7.70%.

As of today (2024-12-13), Cyient DLM's WACC % is 12.67%. Cyient DLM's ROC % is 8.04% (calculated using TTM income statement data). Cyient DLM earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cyient DLM ROC % Historical Data

The historical data trend for Cyient DLM'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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Cyient DLM ROC % Chart

Cyient DLM Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

5.86

11.11

8.19

8.62

Cyient DLM Quarterly Data
	Mar21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial						6.37	8.41	11.77	4.97	7.70

Cyient DLM ROC % Calculation

Cyient DLM'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 )
=	887 * ( 1 - 25.5% )	/	( (7322.76	+	8005.35)	/ 2 )
=	660.815	/	7664.055
=	8.62 %

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	))
=	11047.18	-	2951.01	-	( 773.41	-	max(0, 7448.68	-	8396.88	+	773.41	))
=	7322.76

	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	))
=	16032.76	-	3450.52	-	( 4576.89	-	max(0, 5394.24	-	13259.11	+	4576.89	))
=	8005.35

Cyient DLM'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 )
=	988.76 * ( 1 - 26.03% )	/	( (0	+	9504.59)	/ 1 )
=	731.385772	/	9504.59
=	7.70 %

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	))
=	16921.1	-	2765.63	-	( 4650.88	-	max(0, 6324.16	-	14028.6	+	4650.88	))
=	9504.59

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

Cyient DLM (BOM:543933) 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, Cyient DLM's WACC % is 12.67%. Cyient DLM's ROC % is 8.04% (calculated using TTM income statement data). Cyient DLM 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.

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Cyient DLM Business Description

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CYIENTDLM:India

Address

Plot no.347, D1 &2, KIADB, Electronics City, Hebbal Industrial Area, Mysuru, KA, IND, 570016

Website

https://www.cyientdlm.com

Cyient DLM Ltd is engaged in integrated Electronic Manufacturing Services (EMS) and solutions providers with capabilities across the value chain and the entire life cycle of a product, including design, build, and maintenance. Its solutions comprise the manufacture of the printed circuit board (PCB) assembly (PCBA), cable harnesses, and box builds which are used in safety-critical systems such as cockpits, inflight systems, landing systems, and medical diagnostic equipment, which the company provides to its clients as B2P or B2S services.

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