Synoptics Technologies (NSE:SYNOPTICS) ROC % : 17.40% (As of Mar. 2022)

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What is Synoptics Technologies 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 %. Synoptics Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was 17.40%.

As of today (2024-06-23), Synoptics Technologies's WACC % is 0.00%. Synoptics Technologies's ROC % is 0.00% (calculated using TTM income statement data). Synoptics Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Synoptics Technologies ROC % Historical Data

The historical data trend for Synoptics Technologies'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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Synoptics Technologies ROC % Chart

Synoptics Technologies Annual Data

Trend

Mar20

Mar21

Mar22

ROC %

14.08

13.55

17.40

Synoptics Technologies Semi-Annual Data
	Mar20	Mar21	Mar22
ROC %	14.08	13.55	17.40

Synoptics Technologies ROC % Calculation

Synoptics Technologies'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 )
=	72.069 * ( 1 - 26.28% )	/	( (281.903	+	328.645)	/ 2 )
=	53.1292668	/	305.274
=	17.40 %

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	))
=	375.978	-	86.227	-	( 7.848	-	max(0, 168.404	-	252.078	+	7.848	))
=	281.903

	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	))
=	427.98	-	82.767	-	( 16.568	-	max(0, 185.047	-	284.328	+	16.568	))
=	328.645

Synoptics Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	72.069 * ( 1 - 26.28% )	/	( (281.903	+	328.645)	/ 2 )
=	53.1292668	/	305.274
=	17.40 %

where

	Invested Capital		(Q: 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	))
=	375.978	-	86.227	-	( 7.848	-	max(0, 168.404	-	252.078	+	7.848	))
=	281.903

	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	))
=	427.98	-	82.767	-	( 16.568	-	max(0, 185.047	-	284.328	+	16.568	))
=	328.645

Note: The Operating Income data used here is one times the annual (Mar. 2022) data.

Synoptics Technologies (NSE:SYNOPTICS) 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, Synoptics Technologies's WACC % is 0.00%. Synoptics Technologies's ROC % is 0.00% (calculated using TTM income statement data). Synoptics Technologies 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.

Synoptics Technologies ROC % Related Terms

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Synoptics Technologies (NSE:SYNOPTICS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Synoptics Technologies Ltd (NSE:SYNOPTICS) » Definitions » ROC %

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Address

301, A-Wing, 3rd Floor, Interface 16, Mindspace, Malad (West), Mumbai, MH, IND, 400064

Website

https://synoptics.co.in

Synoptics Technologies Ltd is an IT Services company offering solutions in the areas of IT Infrastructure like connectivity to the Branches, Supply, implementation and support of the network equipment needed to run the IT setup like routers, switches, etc. The company designs the solution for customers who need to put their applications on Cloud. It helps with the application migration and manages the setup in the cloud. It aims to reduce the Total Cost of Ownership (TCO) and increase Return on Investment (RoI) for its customers to adopt any kind of Digital Transformation use case with its technology-led and innovation-driven approach.

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