Alliance HealthCare Services (Alliance HealthCare Services) ROIC % : 8.10% (As of Jun. 2017)

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What is Alliance HealthCare Services 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 %. Alliance HealthCare Services's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2017 was 8.10%.

As of today (2024-04-26), Alliance HealthCare Services's WACC % is 0.00%. Alliance HealthCare Services's ROIC % is 0.00% (calculated using TTM income statement data). Alliance HealthCare Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Alliance HealthCare Services ROIC % Historical Data

The historical data trend for Alliance HealthCare Services'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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Alliance HealthCare Services ROIC % Chart

Alliance HealthCare Services Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROIC %

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4.13

1.35

9.65

9.05

7.61

Alliance HealthCare Services Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17
ROIC %	Get a 7-Day Free Trial															7.48	8.38	9.54	8.76	8.10

Competitive Comparison of Alliance HealthCare Services's ROIC %

For the Diagnostics & Research subindustry, Alliance HealthCare Services'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.

Alliance HealthCare Services's ROIC % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Alliance HealthCare Services's ROIC % distribution charts can be found below:

* The bar in red indicates where Alliance HealthCare Services's ROIC % falls into.

Alliance HealthCare Services ROIC % Calculation

Alliance HealthCare Services's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROIC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	47.592 * ( 1 - 14.98% )	/	( (496.431	+	567.445)	/ 2 )
=	40.4627184	/	531.938
=	7.61 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	603.66	-	80.193	-	( 38.07	-	max(0, 100.911	-	127.947	+	38.07	))
=	496.431

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	659.864	-	85.624	-	( 22.241	-	max(0, 106.363	-	113.158	+	22.241	))
=	567.445

Alliance HealthCare Services's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2017 is calculated as:

	ROIC % (Q: Jun. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2017 )	+	Invested Capital (Q: Jun. 2017 ))	/ count )
=	67.932 * ( 1 - 32.35% )	/	( (560.134	+	574.379)	/ 2 )
=	45.955998	/	567.2565
=	8.10 %

where

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	645.642	-	76.871	-	( 21.472	-	max(0, 99.874	-	108.511	+	21.472	))
=	560.134

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	653.751	-	79.838	-	( 22.653	-	max(0, 117.32	-	116.854	+	22.653	))
=	574.379

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data.

Alliance HealthCare Services (NAS:AIQ) 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, Alliance HealthCare Services's WACC % is 0.00%. Alliance HealthCare Services's ROIC % is 0.00% (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.

Alliance HealthCare Services ROIC % Related Terms

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Alliance HealthCare Services (Alliance HealthCare Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Alliance HealthCare Services Inc (NAS:AIQ) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.alliancehealthcareservices-us.com

Alliance HealthCare Services Inc is a national provider of outsourced medical services, including radiology, oncology and interventional. The company reports in three segments: Radiology, Oncology, and Interventional. Radiology Division provides a full continuum of diagnostic imaging capabilities from mobile to fixed-site to service line management to hospitals and provider groups. This segment is also the highest revenue generating segment for the company. Alliance HealthCare provides a full continuum of services: systems, technologists to operate the systems, sales, and marketing, overall management of services and fixed-site operations including outpatient clinics and Ambulatory Surgical Centers.

Executives

Scott A Bartos	director	450 KNIGHTS RUN, #1604, TAMPA FL 33602
Neil F Dimick	director	BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Oaktree Capital Group Holdings Gp, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital I, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Ocm Holdings I, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Holdings, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Fund Gp I, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group Holdings, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Michael P Harmon	director, 10 percent owner	C/O OAKTREE CAPITAL MANAGEMENT LLC, 333 S GRAND AVE, LOS ANGELES CA 90071
Christopher J Joyce	officer: Executive Vice President, M&A	C/O ALLIANCE ENTERTAINMENT CORP, 110 EAST 59TH STREET 18TH FLOOR, NEW YORK NY 10022
Michael W Michelson	director	2800 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
James C Momtazee	director	2884 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Freeman Kenneth W/nj	director
Oaktree Capital Management Lp	10 percent owner	333 S GRAND AVE 28TH FL, LOS ANGELES CA 90071

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