What is National American University Holdings 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 %. National American University Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2024 was 0.00%.
As of today (2024-04-24), National American University Holdings's WACC % is 3.86%. National American University Holdings's ROIC % is -9.08% (calculated using TTM income statement data).
National American University Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
National American University Holdings ROIC % Historical Data
The historical data trend for National American University Holdings'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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National American University Holdings ROIC % Chart
Competitive Comparison of National American University Holdings's ROIC %
For the Education & Training Services subindustry, National American University Holdings'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.
National American University Holdings's ROIC % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, National American University Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where National American University Holdings's ROIC % falls into.
National American University Holdings ROIC % Calculation
National American University Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2022 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Feb. 2024) data.
* 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.
National American University Holdings (OTCPK:NAUH) 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, National American University Holdings's WACC % is 3.86%. National American University Holdings's ROIC % is -9.08% (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.
National American University Holdings ROIC % Related Terms
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National American University Holdings (National American University Holdings) Business Description
National American University Holdings Inc provides professional and technical post-secondary education for working adults and other non-traditional students. The company owns and operates National American University, a multi-campus institution of higher learning. The university offers diploma, associate, baccalaureate, master's, and doctoral degrees in business-related disciplines, such as accounting, management, business administration, and information technology; in healthcare-related disciplines, such as occupational therapy, medical assisting, nursing, surgical technology, and healthcare information and management; in legal-related disciplines, such as paralegal, criminal justice, and professional legal studies; and in higher education.
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