Jack Nathan Medical (TSXV:JNH) ROC % : -53.14% (As of Oct. 2023)

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What is Jack Nathan Medical 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 %. Jack Nathan Medical's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was -53.14%.

As of today (2024-06-07), Jack Nathan Medical's WACC % is 5.86%. Jack Nathan Medical's ROC % is -78.62% (calculated using TTM income statement data). Jack Nathan Medical earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jack Nathan Medical ROC % Historical Data

The historical data trend for Jack Nathan Medical'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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Jack Nathan Medical ROC % Chart

Jack Nathan Medical Annual Data

Trend

Dec18

Dec19

Jan20

Jan21

Jan22

Jan23

ROC %

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-33.09

-147.78

-75.65

Jack Nathan Medical Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
ROC %	Get a 7-Day Free Trial															-53.10	-119.22	-81.00	-59.72	-53.14

Jack Nathan Medical ROC % Calculation

Jack Nathan Medical's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2023 is calculated as:

	ROC % (A: Jan. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2022 )	+	Invested Capital (A: Jan. 2023 ))	/ count )
=	-5.305 * ( 1 - 1.23% )	/	( (6.406	+	7.447)	/ 2 )
=	-5.2397485	/	6.9265
=	-75.65 %

where

	Invested Capital		(A: Jan. 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	))
=	8.139	-	2.189	-	( 1.064	-	max(0, 2.696	-	2.24	+	1.064	))
=	6.406

	Invested Capital		(A: Jan. 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	))
=	6.5	-	3.165	-	( 1.5	-	max(0, 5.612	-	1.5	+	1.5	))
=	7.447

Jack Nathan Medical's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	-3.716 * ( 1 - 0% )	/	( (6.744	+	7.243)	/ 2 )
=	-3.716	/	6.9935
=	-53.14 %

where

	Invested Capital		(Q: Jul. 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	))
=	12.573	-	2.741	-	( 7.242	-	max(0, 5.108	-	8.196	+	7.242	))
=	6.744

	Invested Capital		(Q: Oct. 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	))
=	11.906	-	4.052	-	( 5.288	-	max(0, 6.338	-	6.949	+	5.288	))
=	7.243

Note: The Operating Income data used here is four times the quarterly (Oct. 2023) data.

Jack Nathan Medical (TSXV:JNH) 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, Jack Nathan Medical's WACC % is 5.86%. Jack Nathan Medical's ROC % is -78.62% (calculated using TTM income statement data). Jack Nathan Medical 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.

Jack Nathan Medical ROC % Related Terms

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Jack Nathan Medical (TSXV:JNH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Jack Nathan Medical Corp (TSXV:JNH) » Definitions » ROC %

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Traded in Other Exchanges

JNHMF:USA

Address

6 - 6150 Highway 7, Suite 491, Jack Nathan Health, Woodbridge, ON, CAN, L4H 0R6

Website

https://www.jacknathanhealth.com

Jack Nathan Medical Corp is a healthcare company that is improving access for millions of patients by co-locating physician and ancillary medical services, conveniently inside Walmart stores. The company generates the majority of its revenues from license fees, which are charged in exchange for the right to use its brand name and the licensed premises. Its geographical segments are Canada, which accounts for the vast majority of revenue; Mexico; and China.

Executives

George Barakat

10% Security Holder, Director

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