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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CoinSmart Financial's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 1.75%.
As of today (2026-07-28), CoinSmart Financial's WACC % is 0.00%. CoinSmart Financial's ROC % is 0.00% (calculated using TTM income statement data).
CoinSmart Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CoinSmart Financial (NEOE:SMRT) 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, CoinSmart Financial's WACC % is 0.00%. CoinSmart Financial's ROC % is 0.00% (calculated using TTM income statement data).
CoinSmart Financial 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.
CoinSmart Financial ROC % Related Terms
CoinSmart Financial ROC % Historical Data
* Premium members only.
The historical data trend for CoinSmart Financial'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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
CoinSmart Financial (NEOE:SMRT) has a ROC % of 1.75% as of Mar. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CoinSmart Financial and its competitors.
Is CoinSmart Financial's ROC % too high?
CoinSmart Financial's current ROC % is 1.75%. The Software industry median ROC % is 3.18. CoinSmart Financial's value of 1.75% is 44.9% below this industry median. Overall, CoinSmart Financial has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does CoinSmart Financial's ROC % compare to CRM and INTU?
CoinSmart Financial's ROC % of 1.75% can be compared against companies in the Software industry. The industry median ROC % is 3.18. CoinSmart Financial's value of 1.75% is 44.9% below this benchmark. 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 Software company?
The median ROC % among Software companies is 3.18, based on 2,834 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CoinSmart Financial's current ROC % of 1.75% is 44.9% below the industry median. 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 CoinSmart Financial and its competitors. For the Software industry, the median ROC % is 3.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CoinSmart Financial's current ROC % is 1.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CoinSmart Financial stock overvalued right now?
CoinSmart Financial (NEOE:SMRT) has a current ROC % of 1.75%. The current ROC % is 1.75% and 44.9% below the Software industry median of 3.18. CoinSmart Financial's overall GF Score™ is 25/100. 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 CoinSmart Financial (NEOE:SMRT), the current ROC % is 1.75% as of Mar. 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.
CoinSmart Financial Inc is a Toronto-based fintech company that operates an online crypto asset trading platform that provides a secure and intuitive platform for trading crypto assets. It is a digital asset trading platform dedicated to providing customers with an intuitive way for buying and selling digital assets, like Bitcoin and Ethereum, combined with the seamless ability to on-ramp and off-ramp fiat. The CoinSmart Platform lists liquid crypto assets, including Bitcoin, Ether,Polkadot, Shiba Inu, Chainlink, Uniswap, Solana, Polygon, Avalanche, Litecoin, Bitcoin Cash, Dogecoin,Stellar, USD Coin, EOS and Cardano.
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