Vinsys IT Services India (NSE:VINSYS) ROC % : 30.55% (As of Mar. 2024)

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What is Vinsys IT Services 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 %. Vinsys IT Services India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 30.55%.

As of today (2025-01-18), Vinsys IT Services India's WACC % is 12.68%. Vinsys IT Services India's ROC % is 29.99% (calculated using TTM income statement data). Vinsys IT Services India 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.

Vinsys IT Services India ROC % Historical Data

The historical data trend for Vinsys IT Services 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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Vinsys IT Services India ROC % Chart

Vinsys IT Services India Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

8.71

-641.16

39.89

33.25

Vinsys IT Services India Semi-Annual Data
	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial			-	21.48	54.63	26.18	30.55

Vinsys IT Services India ROC % Calculation

Vinsys IT Services 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 )
=	262.236 * ( 1 - 7.04% )	/	( (438.33	+	1027.801)	/ 2 )
=	243.7745856	/	733.0655
=	33.25 %

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	))
=	727.061	-	213.422	-	( 75.309	-	max(0, 292.161	-	443.276	+	75.309	))
=	438.33

	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	))
=	1379.564	-	149.933	-	( 201.83	-	max(0, 205.697	-	870.877	+	201.83	))
=	1027.801

Vinsys IT Services 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 )
=	351.664 * ( 1 - 13.12% )	/	( (972.328	+	1027.801)	/ 2 )
=	305.5256832	/	1000.0645
=	30.55 %

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	))
=	1322.949	-	35.8	-	( 314.821	-	max(0, 176.451	-	976.656	+	314.821	))
=	972.328

	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	))
=	1379.564	-	149.933	-	( 201.83	-	max(0, 205.697	-	870.877	+	201.83	))
=	1027.801

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

Vinsys IT Services India (NSE:VINSYS) 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, Vinsys IT Services India's WACC % is 12.68%. Vinsys IT Services India's ROC % is 29.99% (calculated using TTM income statement data). Vinsys IT Services India 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.

Vinsys IT Services India ROC % Related Terms

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Vinsys IT Services India Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Vinsys IT Services India Ltd (NSE:VINSYS) » Definitions » ROC %

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Traded in Other Exchanges

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Address

S. No. 28/11- 12, Shivaji Niketan, C.T.S. No. 458A, Tejas Housing Society, Near Mantri Park Behind Kothrud Bus Stand, Kothrud, Pune, MH, IND, 411038

Website

https://www.vinsys.com

Vinsys IT Services India Ltd is engaged in the IT business. The core competencies of the company include Training and Certifications, Digital Learning, IT Services, Business Academy, and technology training. The company is dedicated to becoming an accredited training service provider to meet the growing demand for training and workforce development. The company specializes in corporate training and consulting across a broad range of domains. The company caters to professionals across all industries and domains and offers assistance to organizations in formulating their learning and development strategies.

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