VSA Capital Group (AQSE:VSA) ROC % : -54.88% (As of Sep. 2023)

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What is VSA Capital Group 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 %. VSA Capital Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -54.88%.

As of today (2024-06-02), VSA Capital Group's WACC % is 7.67%. VSA Capital Group's ROC % is 60.86% (calculated using TTM income statement data). VSA Capital Group 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.

VSA Capital Group ROC % Historical Data

The historical data trend for VSA Capital Group'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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VSA Capital Group ROC % Chart

VSA Capital Group Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

ROC %

-150.00

-1.48

11.83

42.16

VSA Capital Group Semi-Annual Data
	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial			-20.10	58.89	-37.46	146.60	-54.88

VSA Capital Group ROC % Calculation

VSA Capital Group'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 )
=	1.141 * ( 1 - 11.74% )	/	( (2.632	+	2.145)	/ 2 )
=	1.0070466	/	2.3885
=	42.16 %

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	))
=	5.315	-	0.109	-	( 2.702	-	max(0, 0.665	-	3.239	+	2.702	))
=	2.632

	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	))
=	5.335	-	0.14	-	( 3.415	-	max(0, 0.746	-	3.796	+	3.415	))
=	2.145

VSA Capital Group'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 )
=	-0.982 * ( 1 - 0% )	/	( (2.145	+	1.434)	/ 2 )
=	-0.982	/	1.7895
=	-54.88 %

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	))
=	5.335	-	0.14	-	( 3.415	-	max(0, 0.746	-	3.796	+	3.415	))
=	2.145

	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	))
=	3.247	-	0.365	-	( 1.652	-	max(0, 0.527	-	1.975	+	1.652	))
=	1.434

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

VSA Capital Group (AQSE:VSA) 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, VSA Capital Group's WACC % is 7.67%. VSA Capital Group's ROC % is 60.86% (calculated using TTM income statement data). VSA Capital Group 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.

VSA Capital Group ROC % Related Terms

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VSA Capital Group (AQSE:VSA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » VSA Capital Group PLC (AQSE:VSA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

16-18 Finsbury Circus, Park House, London, EC2M 7EB, GBR

Website

https://www.vsacapital.com

VSA Capital Group PLC is an international investment banking and broking firm, that provides corporate finance, advisory, and capital markets services to private and public companies. Its focus is on providing an independent, solutions-driven service to clients across multiple sectors with a particular focus on natural resources, transitional energy, and mobility, technology, and software, Consumer Brands, Leisure, and eCommerce.

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