CMS Info Systems (NSE:CMSINFO) ROC % : 18.84% (As of Sep. 2024)

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What is CMS Info Systems 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 %. CMS Info Systems's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 18.84%.

As of today (2024-12-16), CMS Info Systems's WACC % is 15.00%. CMS Info Systems's ROC % is 24.80% (calculated using TTM income statement data). CMS Info Systems generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

CMS Info Systems ROC % Historical Data

The historical data trend for CMS Info Systems'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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CMS Info Systems ROC % Chart

CMS Info Systems Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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24.53

24.34

28.02

26.97

25.24

CMS Info Systems Quarterly Data
	Mar19	Mar20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial													20.96	21.73	38.51	20.29	18.84

CMS Info Systems ROC % Calculation

CMS Info Systems'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 )
=	5503.43 * ( 1 - 25.68% )	/	( (15649.33	+	16755.74)	/ 2 )
=	4090.149176	/	16202.535
=	25.24 %

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	))
=	21012.26	-	1491.48	-	( 3871.45	-	max(0, 3642.42	-	10782.2	+	3871.45	))
=	15649.33

	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	))
=	26585.24	-	3185.72	-	( 6643.78	-	max(0, 5515.7	-	16181.26	+	6643.78	))
=	16755.74

CMS Info Systems's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	4561.88 * ( 1 - 25.8% )	/	( (0	+	17969.2)	/ 1 )
=	3384.91496	/	17969.2
=	18.84 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Sep. 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	))
=	28620.93	-	4104.93	-	( 6546.8	-	max(0, 5967.01	-	18143.84	+	6546.8	))
=	17969.2

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

CMS Info Systems (NSE:CMSINFO) 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, CMS Info Systems's WACC % is 15.00%. CMS Info Systems's ROC % is 24.80% (calculated using TTM income statement data). CMS Info Systems generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

CMS Info Systems ROC % Related Terms

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CMS Info Systems Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » CMS Info Systems Ltd (NSE:CMSINFO) » Definitions » ROC %

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543441:India

Address

Off Western Express Highway, Grand Hyatt Mumbai, Lobby level, Santacruz East, Mumbai, MH, IND, 400055

Website

https://www.cms.com

CMS Info Systems Ltd is engaged in the business of providing ATM and Cash Management services, supply, installation and maintenance of ATM and cash deposit machines, and also engaged in card trading and personalization services. Its reportable segments are; Cash Management services; Managed services; and Card services. Maximum revenue for the company is generated from its Cash Management services segment which provides ATM cash management services, Retail cash management services, Cash in transit services for banks, and other related services.

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