TAC Infosec (NSE:TAC) ROC % : 54.67% (As of Sep. 2023)

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What is TAC Infosec 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 %. TAC Infosec's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 54.67%.

As of today (2025-01-18), TAC Infosec's WACC % is 0.00%. TAC Infosec's ROC % is 0.00% (calculated using TTM income statement data). TAC Infosec earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TAC Infosec ROC % Historical Data

The historical data trend for TAC Infosec'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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TAC Infosec ROC % Chart

TAC Infosec Annual Data

Trend

Mar21

Mar22

Mar23

ROC %

41.50

32.50

125.51

TAC Infosec Semi-Annual Data
	Mar21	Mar22	Mar23	Sep23
ROC %	-	-	-	54.67

TAC Infosec ROC % Calculation

TAC Infosec'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 )
=	54.285 * ( 1 - 0.34% )	/	( (23.281	+	62.928)	/ 2 )
=	54.100431	/	43.1045
=	125.51 %

where

	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	))
=	49.645	-	9.17	-	( 17.194	-	max(0, 19.65	-	40.233	+	17.194	))
=	23.281

	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	))
=	97.765	-	6.1	-	( 28.737	-	max(0, 19.046	-	81.652	+	28.737	))
=	62.928

TAC Infosec's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	40.772 * ( 1 - 3.51% )	/	( (62.928	+	81.006)	/ 2 )
=	39.3409028	/	71.967
=	54.67 %

where

	Invested Capital		(Q: 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	))
=	97.765	-	6.1	-	( 28.737	-	max(0, 19.046	-	81.652	+	28.737	))
=	62.928

	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	))
=	121.302	-	8.982	-	( 31.314	-	max(0, 23.791	-	103.463	+	31.314	))
=	81.006

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

TAC Infosec (NSE:TAC) 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, TAC Infosec's WACC % is 0.00%. TAC Infosec's ROC % is 0.00% (calculated using TTM income statement data). TAC Infosec 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.

TAC Infosec ROC % Related Terms

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TAC Infosec Business Description

Industry

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Address

CST Road, 91 Springboard, Kagalwala House, 01st Floor, C Block, 175, CST Road, Kalina, Santacruz East, Mumbai, MH, IND, 400098

Website

https://www.tacsecurity.com

TAC Infosec Ltd is engaged in the business of providing risk-based vulnerability management and assessment solutions, cybersecurity quantification, and services of Penetration testing to organizations of any scale, size, and business through the SaaS model. It offers security software products and solutions both in India and internationally. and its end customers are Banks and Financial Institutions, government regulatory bodies and departments, and large-scale enterprises (including business offices) like HDFC, Bandhan Bank, BSE, etc. Its flagship software product is ESOF (Enterprise Security in One Framework) which is a vulnerability management platform consisting of various product portfolios namely ESOF Appsec, ESOF VMP, ESOF VACA, ESOF PCI ASV, and ESOF CRQ.