Cell Point (India) (NSE:CELLPOINT) ROC % : 0.07% (As of Mar. 2024)

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What is Cell Point (India) 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 %. Cell Point (India)'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.07%.

As of today (2024-06-21), Cell Point (India)'s WACC % is 11.29%. Cell Point (India)'s ROC % is 3.86% (calculated using TTM income statement data). Cell Point (India) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cell Point (India) ROC % Historical Data

The historical data trend for Cell Point (India)'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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Cell Point (India) ROC % Chart

Cell Point (India) Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

13.60

8.00

11.85

19.33

3.70

Cell Point (India) Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial			-	20.79	-	5.89	0.07

Cell Point (India) ROC % Calculation

Cell Point (India)'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 )
=	67.922 * ( 1 - 37.77% )	/	( (0	+	1142.402)	/ 1 )
=	42.2678606	/	1142.402
=	3.70 %

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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	1341.182	-	91.913	-	( 120.013	-	max(0, 603.848	-	710.715	+	120.013	))
=	1142.402

Cell Point (India)'s annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	50.294 * ( 1 - 98.55% )	/	( (1047.372	+	1142.402)	/ 2 )
=	0.729263	/	1094.887
=	0.07 %

where

	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	))
=	1290.576	-	152.756	-	( 90.448	-	max(0, 528.144	-	698.019	+	90.448	))
=	1047.372

	Invested Capital		(Q: 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	))
=	1341.182	-	91.913	-	( 120.013	-	max(0, 603.848	-	710.715	+	120.013	))
=	1142.402

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

Cell Point (India) (NSE:CELLPOINT) 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, Cell Point (India)'s WACC % is 11.29%. Cell Point (India)'s ROC % is 3.86% (calculated using TTM income statement data). Cell Point (India) 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.

Cell Point (India) ROC % Related Terms

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Cell Point (India) (NSE:CELLPOINT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Cell Point (India) Ltd (NSE:CELLPOINT) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Ward No. 27, Ram’s Arcade, Door No. 30-15-139, Room No. 5 and 6, Opposite Visakha Medical Centre, Dabagardens, Visakhapatnam, AP, IND, 530020

Website

https://www.cellpoint.biz

Cell Point (India) Ltd is engaged in multi-brand retail selling of Smart Phones, tablets, mobile accessories, and mobile-related products and allied accessories of various brands such as Apple, Samsung, Oppo, Realme, Nokia, Vivo, Xiaomi, Nokia, Redmi, Techno, One Plus, GIONEE, VIVO, etc. It is also engaged in retail selling of some of the consumer durable electronics goods, specifically, smart televisions of various brands such as Xiaomi, Realme, and One Plus. The company also provides payment options such as credit/EMI facilities including UPI, vouchers, & pay-on-delivery to its customers for buying its products for which the company has tied up with major leading credit houses.

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