SBFC Finance (BOM:543959) ROC % : 5.53% (As of Dec. 2024)

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What is SBFC 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 %. SBFC Finance's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 5.53%.

As of today (2025-04-03), SBFC Finance's WACC % is 8.97%. SBFC Finance's ROC % is 5.13% (calculated using TTM income statement data). SBFC Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SBFC Finance ROC % Historical Data

The historical data trend for SBFC 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.

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SBFC Finance ROC % Chart

SBFC Finance Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

-1.11

-0.56

0.97

2.55

3.79

SBFC Finance Quarterly Data
	Mar20	Mar21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial								4.83	3.06	5.47	5.32	5.53

SBFC Finance ROC % Calculation

SBFC 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 )
=	3017.07 * ( 1 - 25% )	/	( (56010.09	+	63357.32)	/ 2 )
=	2262.8025	/	59683.705
=	3.79 %

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	))
=	57464.4	-	164.04	-	( 3632.13	-	max(0, 13895.98	-	15186.25	+	3632.13	))
=	56010.09

	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	))
=	70627.85	-	274.31	-	( 6996.22	-	max(0, 16957.58	-	28516.98	+	6996.22	))
=	63357.32

SBFC 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 )
=	5341.44 * ( 1 - 25.04% )	/	( (72375.83	+	0)	/ 1 )
=	4003.943424	/	72375.83
=	5.53 %

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	))
=	75335.12	-	156.89	-	( 2802.4	-	max(0, 156.89	-	69083.35	+	2802.4	))
=	72375.83

	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.

SBFC Finance (BOM:543959) 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, SBFC Finance's WACC % is 8.97%. SBFC Finance's ROC % is 5.13% (calculated using TTM income statement data). SBFC 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.

SBFC Finance ROC % Related Terms

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SBFC Finance Business Description

Industry

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SBFC:India

Address

Andheri Kurla Road, Unit No. 103, 1st Floor, C&B Square, CTS No. 95A, Sangam Complex, Village Chakala, Andheri East, Mumbai, MH, IND, 400 059

Website

https://www.sbfc.com

SBFC Finance Ltd is a systemically important, non-deposit-taking non-banking finance company offering Secured MSME Loans and Loans against Gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals. It has developed a PhyGital model which uses technology and authentic in-person service to create loans that support the ambitions of its customers. The company engages directly with small business owners and works through loan applications together, in person, at the customer's pace. The company generates the majority of its revenue from Interest Income.

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