FSRXW (Finserv Acquisition II) ROC %: -0.13% (As of Sep. 2023)


FSRXW Finserv Acquisition Corp II FSRXW
25 GF Score
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What is Finserv Acquisition II ROC %?

Finserv Acquisition II FSRXW 25 ROC % is -0.13% as of Sep. 2023. GuruFocus rates FSRXW with a GF Score™ of 25/100. The stock has 1 warning sign investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Finserv Acquisition II's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -0.13%.

As of today (2026-06-27), Finserv Acquisition II's WACC % is 9.77%. Finserv Acquisition II's ROC % is -0.53% (calculated using TTM income statement data). Finserv Acquisition II earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Finserv Acquisition II  (NAS:FSRXW) 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, Finserv Acquisition II's WACC % is 9.77%. Finserv Acquisition II's ROC % is -0.53% (calculated using TTM income statement data). Finserv Acquisition II 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.

Finserv Acquisition II ROC % Related Terms

Finserv Acquisition II ROC % Historical Data

* Premium members only.

The historical data trend for Finserv Acquisition II'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.

Finserv Acquisition II ROC % Chart

Finserv Acquisition II Annual Data
Trend Dec20 Dec21 Dec22
ROC %
0.00 -0.43 -0.25

Finserv Acquisition II Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.25 -0.23 -0.63 -1.22 -0.13
FSRXW
25GF Score
Finserv Acquisition Corp II FSRXW
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Finserv Acquisition II ROC % Calculation

Finserv Acquisition II's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-0.836 * ( 1 - 10.01% )/( (300.052 + 303.512)/ 2 )
=-0.7523164/301.782
=-0.25 %

where

Invested Capital(A: Dec. 2021 )
=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))
=301.428 - 0.321 - ( 1.151 - max(0, 0.321 - 1.376+1.151))
=300.052

Invested Capital(A: Dec. 2022 )
=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))
=304.154 - 0.448 - ( 0.611 - max(0, 0.448 - 0.642+0.611))
=303.512

Finserv Acquisition II's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-0.812 * ( 1 - 95.18% )/( (50.854 + 10.847)/ 2 )
=-0.0391384/30.8505
=-0.13 %

where

Invested Capital(Q: Jun. 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))
=51.046 - 2.566 - ( 0.117 - max(0, 2.566 - 0.192+0.117))
=50.854

Invested Capital(Q: Sep. 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))
=10.99 - 3.014 - ( 0.132 - max(0, 3.139 - 0.268+0.132))
=10.847

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -0.13% mean?
Finserv Acquisition II (FSRXW) has a ROC % of -0.13% as of Sep. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Finserv Acquisition II and its competitors.
Is Finserv Acquisition II's ROC % too high?
Finserv Acquisition II's current ROC % is -0.13%. Overall, Finserv Acquisition II has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Finserv Acquisition II's ROC % compare to ATMC and IMAQ?
Finserv Acquisition II's ROC % of -0.13% can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Diversified Financial Services company?
A good ROC % depends on the Diversified Financial Services industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Finserv Acquisition II and its competitors. Finserv Acquisition II's current ROC % is -0.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Finserv Acquisition II stock overvalued right now?
Finserv Acquisition II (FSRXW) has a current ROC % of -0.13%. The current ROC % is -0.13%. Finserv Acquisition II's overall GF Score™ is 25/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Finserv Acquisition II (FSRXW), the current ROC % is -0.13% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Finserv Acquisition II Business Description

Address c/o Ellenoff Grossman & Schole LLP, 1345 Avenue of the Americas, New York, NY, USA, 10105
Finserv Acquisition Corp II is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses.
25GF Score

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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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