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Diensten Tech (NSE:DTL) ROC % : 9.45% (As of Mar. 2023)


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What is Diensten Tech 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 %. Diensten Tech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was 9.45%.

As of today (2025-03-20), Diensten Tech's WACC % is 0.00%. Diensten Tech's ROC % is 0.00% (calculated using TTM income statement data). Diensten Tech earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Diensten Tech ROC % Historical Data

The historical data trend for Diensten Tech'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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Diensten Tech ROC % Chart

Diensten Tech Annual Data
Trend Mar21 Mar22 Mar23
ROC %
30.70 1.42 4.73

Diensten Tech Semi-Annual Data
Mar21 Mar22 Mar23
ROC % 61.41 2.84 9.45

Diensten Tech ROC % Calculation

Diensten Tech's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=3.262 * ( 1 - 28.27% )/( (12.289 + 86.747)/ 2 )
=2.3398326/49.518
=4.73 %

where

Diensten Tech's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

ROC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=6.524 * ( 1 - 28.27% )/( (12.289 + 86.747)/ 2 )
=4.6796652/49.518
=9.45 %

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2023) data.

* 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.


Diensten Tech  (NSE:DTL) 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, Diensten Tech's WACC % is 0.00%. Diensten Tech's ROC % is 0.00% (calculated using TTM income statement data). Diensten Tech 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.


Diensten Tech ROC % Related Terms

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Diensten Tech Business Description

Traded in Other Exchanges
N/A
Address
F3, Sector-3, Noida, UP, IND, 201302
Diensten Tech Ltd the business of Information Technology ('IT') professional resourcing, IT Consultancy, IT Training and Software AMC. It connect clients to individuals with a specific IT skill set, manage capacity across a team, or deliver in-house technology experts to take client project to full delivery. Diensten is providing technical consultancy, training, software services and other services to large corporates of the country, multinational companies, small and medium enterprises of diversified sectors.

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