Oracle Healthcare Acquisition (Oracle Healthcare Acquisition) ROC % : 19.41% (As of Dec. 2007)

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What is Oracle Healthcare Acquisition 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 %. Oracle Healthcare Acquisition's annualized return on capital (ROC %) for the quarter that ended in Dec. 2007 was 19.41%.

As of today (2024-05-20), Oracle Healthcare Acquisition's WACC % is 0.00%. Oracle Healthcare Acquisition's ROC % is 0.00% (calculated using TTM income statement data). Oracle Healthcare Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Oracle Healthcare Acquisition ROC % Historical Data

The historical data trend for Oracle Healthcare Acquisition'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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Oracle Healthcare Acquisition ROC % Chart

Oracle Healthcare Acquisition Annual Data

Trend

Dec05

Dec06

Dec07

ROC %

5.16

2.96

Oracle Healthcare Acquisition Quarterly Data
	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07
ROC %	Get a 7-Day Free Trial			2.32	-0.76	0.23	-0.47	19.41

Oracle Healthcare Acquisition ROC % Calculation

Oracle Healthcare Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2007 is calculated as:

	ROC % (A: Dec. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2006 )	+	Invested Capital (A: Dec. 2007 ))	/ count )
=	5.229 * ( 1 - 24.57% )	/	( (134.066	+	132.817)	/ 2 )
=	3.9442347	/	133.4415
=	2.96 %

where

	Invested Capital		(A: Dec. 2006 )
=	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	))
=	117.182	-	0	-	( 0.553	-	max(0, 17.437	-	0.553	+	0.553	))
=	134.066

	Invested Capital		(A: Dec. 2007 )
=	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	))
=	120.361	-	0.363	-	( 0.024	-	max(0, 13.208	-	0.389	+	0.024	))
=	132.817

Oracle Healthcare Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2007 is calculated as:

	ROC % (Q: Dec. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2007 )	+	Invested Capital (Q: Dec. 2007 ))	/ count )
=	22.492 * ( 1 - -11.07% )	/	( (124.596	+	132.817)	/ 2 )
=	24.9818644	/	128.7065
=	19.41 %

where

	Invested Capital		(Q: Sep. 2007 )
=	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	))
=	119.728	-	0	-	( 0.054	-	max(0, 5.404	-	0.536	+	0.054	))
=	124.596

	Invested Capital		(Q: Dec. 2007 )
=	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	))
=	120.361	-	0.363	-	( 0.024	-	max(0, 13.208	-	0.389	+	0.024	))
=	132.817

Note: The Operating Income data used here is four times the quarterly (Dec. 2007) data.

Oracle Healthcare Acquisition (OTCPK:OHAQ) 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, Oracle Healthcare Acquisition's WACC % is 0.00%. Oracle Healthcare Acquisition's ROC % is 0.00% (calculated using TTM income statement data). Oracle Healthcare Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Oracle Healthcare Acquisition ROC % Related Terms

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Oracle Healthcare Acquisition (Oracle Healthcare Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Oracle Healthcare Acquisition Corp (OTCPK:OHAQ) » Definitions » ROC %

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Address

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Executives

Andrew M Weiss	10 percent owner	222 BERKELEY STREET, 16TH FLOOR, BOSTON MA 02116
Jeffrey Tannenbaum	10 percent owner	505 FIFTH AVENUE, 23RD FLOOR, NEW YORK NY 10017
Fir Tree Inc.	10 percent owner	500 FIFTH AVENUE, 9TH FLOOR, NEW YORK NY 10110
Camellia Partners, Llc	10 percent owner	51 BEDFORD ROAD, SUITES 3 & 4, KATONAH NY 10536
Andrew Fredman	10 percent owner	7301 SW 57TH COURT, SUITE 410, SOUTH MIAMI FL 33143
Fir Tree, L.l.c.	10 percent owner	505 FIFTH AVENUE, 23RD FLOOR, NEW YORK NY 10017
Per Gh Lofberg	director	C/O MERCK CAPITAL VENTURES, 50 TICE BLVD, WOODCLIFF NJ 07677
Larry N Feinberg	director, 10 percent owner	C/O ORACLE PARTNERS L P, 200 GREENWICH AVENUE, GREENWICH CT 06830
George Bickerstaff	director	C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Kevin C Johnson	director	12 KEELERS RIDGE ROAD, WILTON CT 06897
Mark A Radzik	officer: CFO & Secretary
Joel D Liffman	director, officer: President and COO	C/O ORACLE STRATEGIES PARTNERS, L.P., 712 FIFTH AVENUE, 45TH FLOOR, NEW YORK NY 10019

Oracle Healthcare Acquisition (Oracle Healthcare Acquisition) Headlines

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