Triple Pointome VCT (LSE:TPVA) ROC % : 0.00% (As of Sep. 2022)

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What is Triple Pointome VCT 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 %. Triple Pointome VCT's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was 0.00%.

As of today (2024-06-07), Triple Pointome VCT's WACC % is 9.43%. Triple Pointome VCT's ROC % is 0.00% (calculated using TTM income statement data). Triple Pointome VCT earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Triple Pointome VCT ROC % Historical Data

The historical data trend for Triple Pointome VCT'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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Triple Pointome VCT ROC % Chart

Triple Pointome VCT Annual Data

Trend

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

ROC %

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Triple Pointome VCT Semi-Annual Data
	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Triple Pointome VCT ROC % Calculation

Triple Pointome VCT's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2022 is calculated as:

	ROC % (A: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2021 )	+	Invested Capital (A: Mar. 2022 ))	/ count )
=	0 * ( 1 - 3.87% )	/	( (48.518	+	20.638)	/ 2 )
=	0	/	34.578
=	0.00 %

where

	Invested Capital		(A: Mar. 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	))
=	49.527	-	0.488	-	( 0.521	-	max(0, 0.488	-	1.437	+	0.521	))
=	48.518

	Invested Capital		(A: Mar. 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	))
=	24.69	-	0.221	-	( 3.831	-	max(0, 0.221	-	4.509	+	3.831	))
=	20.638

Triple Pointome VCT's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	0 * ( 1 - 0% )	/	( (20.638	+	22.034)	/ 2 )
=	0	/	21.336
=	0.00 %

where

	Invested Capital		(Q: Mar. 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	))
=	24.69	-	0.221	-	( 3.831	-	max(0, 0.221	-	4.509	+	3.831	))
=	20.638

	Invested Capital		(Q: Sep. 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	))
=	25.989	-	0.194	-	( 3.761	-	max(0, 0.194	-	4.489	+	3.761	))
=	22.034

Note: The Operating Income data used here is two times the semi-annual (Sep. 2022) data.

Triple Pointome VCT (LSE:TPVA) 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, Triple Pointome VCT's WACC % is 9.43%. Triple Pointome VCT's ROC % is 0.00% (calculated using TTM income statement data). Triple Pointome VCT 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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Triple Pointome VCT (LSE:TPVA) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Triple Point Income VCT PLC (LSE:TPVA) » Definitions » ROC %

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Address

1 King William Street, London, GBR, EC4N 7AF

Website

https://www.triplepoint.co.uk

Triple Point Income VCT PLC is a part of the financial services domain in the United Kingdom. It is a venture capital trust formed with the objective of capital preservation and payment of regular tax-free dividends to investors. The company's mission comprises three priorities, which are capital security, liquidity, and predictable returns. It has chosen to focus its investing activities towards companies involved in renewable energy, energy production, innovative vertical growing, and SME funding.

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