Finexia Financial Group (ASX:FNX) ROIC % : 11.50% (As of Dec. 2024)

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What is Finexia Financial Group ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Finexia Financial Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 11.50%.

As of today (2025-03-23), Finexia Financial Group's WACC % is 10.83%. Finexia Financial Group's ROIC % is -9.61% (calculated using TTM income statement data). Finexia Financial Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Finexia Financial Group ROIC % Historical Data

The historical data trend for Finexia Financial Group's ROIC % 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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Finexia Financial Group ROIC % Chart

Finexia Financial Group Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROIC %

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-25.90

-9.56

4.35

5.55

-4.67

Finexia Financial Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROIC %	Get a 7-Day Free Trial															5.11	5.38	9.23	-46.52	11.50

Competitive Comparison of Finexia Financial Group's ROIC %

For the Capital Markets subindustry, Finexia Financial Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Finexia Financial Group's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Finexia Financial Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Finexia Financial Group's ROIC % falls into.

Finexia Financial Group ROIC % Calculation

Finexia Financial Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROIC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-7.341 * ( 1 - 67.43% )	/	( (30.727	+	71.717)	/ 2 )
=	-2.3909637	/	51.222
=	-4.67 %

where

	Invested Capital		(A: Jun. 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	))
=	77.738	-	0.856	-	( 46.155	-	max(0, 23.564	-	71.211	+	46.155	))
=	30.727

	Invested Capital		(A: 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	))
=	112.838	-	2.276	-	( 46.829	-	max(0, 11.66	-	50.505	+	46.829	))
=	71.717

Finexia Financial Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROIC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	9.824 * ( 1 - 2.04% )	/	( (71.717	+	95.7)	/ 2 )
=	9.6235904	/	83.7085
=	11.50 %

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	))
=	112.838	-	2.276	-	( 46.829	-	max(0, 11.66	-	50.505	+	46.829	))
=	71.717

	Invested Capital		(Q: Dec. 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	))
=	138.098	-	4.926	-	( 39.5	-	max(0, 5.987	-	43.459	+	39.5	))
=	95.7

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

Finexia Financial Group (ASX:FNX) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Finexia Financial Group's WACC % is 10.83%. Finexia Financial Group's ROIC % is -9.61% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Finexia Financial Group ROIC % Related Terms

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Finexia Financial Group Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

264 George Street, Level 18, Australia Square Tower Building, Sydney, NSW, AUS, 2000

Website

https://www.finexia.com.au

Finexia Financial Group Ltd is a diversified financial services company engaged in private credit, funds management, and structured financing. The company focuses on lending markets, particularly in the childcare sector, where it provides financial solutions for acquiring, opening, refurbishing, and expanding childcare centers. Additionally, Finexia rewards investors with monthly distributions, offering a consistent income stream. Its operating segments include Stockbroking and Corporate Advisory, Funds and Asset Management, and Private Credit.