GURUFOCUS.COM » STOCK LIST » Technology » Software » Adroit Infotech Ltd (BOM:890196) » Definitions » ROC %

Adroit Infotech (BOM:890196) ROC % : 1.99% (As of Dec. 2024)


View and export this data going back to 2024. Start your Free Trial

What is Adroit Infotech 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 %. Adroit Infotech's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 1.99%.

As of today (2025-03-05), Adroit Infotech's WACC % is 7.25%. Adroit Infotech's ROC % is 4.63% (calculated using TTM income statement data). Adroit Infotech earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Adroit Infotech ROC % Historical Data

The historical data trend for Adroit Infotech'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.

Adroit Infotech ROC % Chart

Adroit Infotech Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.25 -1.06 6.60 17.08 7.02

Adroit Infotech 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.49 11.87 2.21 2.00 1.99

Adroit Infotech ROC % Calculation

Adroit Infotech'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 )
=32.034 * ( 1 - 21.44% )/( (283.275 + 434.099)/ 2 )
=25.1659104/358.687
=7.02 %

where

Adroit Infotech'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 )
=18.408 * ( 1 - 24.77% )/( (697.088 + 0)/ 1 )
=13.8483384/697.088
=1.99 %

where

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

* 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.


Adroit Infotech  (BOM:890196) 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, Adroit Infotech's WACC % is 7.25%. Adroit Infotech's ROC % is 4.63% (calculated using TTM income statement data). Adroit Infotech 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.


Adroit Infotech ROC % Related Terms

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


Adroit Infotech Business Description

Traded in Other Exchanges
Address
Road Number 12, Banjara Hills, Plot Number 7A, MLA Colony, Hyderabad, TG, IND, 500034
Adroit Infotech Ltd is a SAP Consulting company. The company services include 4 Hana Enterprise Management; Data Analytics and Mobility; Conventional SAP ECC; Next Generation Products; and Migrations to Hana. The company offers network solutions like the Internet, Network Management Services, Data Centre and Co-Location Services and Enterprise Mailing Solutions. The company derives revenues essentially from business IT services comprising software development and related services, consulting, and package implementation. Geographically the company generates the majority of its revenue from foreign.

Adroit Infotech Headlines

No Headlines