Nexia Health Technologies (TSXV:NGH.H) ROC % : 0.00% (As of Dec. 2019)

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What is Nexia Health Technologies 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 %. Nexia Health Technologies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was 0.00%.

As of today (2024-05-31), Nexia Health Technologies's WACC % is 0.00%. Nexia Health Technologies's ROC % is 0.00% (calculated using TTM income statement data). Nexia Health Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nexia Health Technologies ROC % Historical Data

The historical data trend for Nexia Health Technologies'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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Nexia Health Technologies ROC % Chart

Nexia Health Technologies Annual Data

Trend

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

ROC %

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-8.68

-4.63

Nexia Health Technologies Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Nexia Health Technologies ROC % Calculation

Nexia Health Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2019 is calculated as:

	ROC % (A: Mar. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2018 )	+	Invested Capital (A: Mar. 2019 ))	/ count )
=	-1.451 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-1.451	/	0
=	%

where

	Invested Capital		(A: Mar. 2018 )
=	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	))
=	2.019	-	2.155	-	( 1.284	-	max(0, 2.155	-	2.019	+	1.284	))
=	0

	Invested Capital		(A: Mar. 2019 )
=	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	))
=	0.837	-	2.543	-	( 0.74	-	max(0, 2.543	-	0.837	+	0.74	))
=	0

Nexia Health Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-0.6 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.6	/	0
=	%

where

	Invested Capital		(Q: Sep. 2019 )
=	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	))
=	0.381	-	2.695	-	( 0.343	-	max(0, 2.695	-	0.381	+	0.343	))
=	0

	Invested Capital		(Q: Dec. 2019 )
=	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	))
=	0.24	-	2.704	-	( 0.189	-	max(0, 2.704	-	0.24	+	0.189	))
=	0

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.

Nexia Health Technologies (TSXV:NGH.H) 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, Nexia Health Technologies's WACC % is 0.00%. Nexia Health Technologies's ROC % is 0.00% (calculated using TTM income statement data). Nexia Health Technologies 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.

Nexia Health Technologies ROC % Related Terms

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Nexia Health Technologies (TSXV:NGH.H) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Nexia Health Technologies Inc (TSXV:NGH.H) » Definitions » ROC %

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Address

15 Allstate Parkway, 6th Floor, Markham, ON, CAN, L3R5B4

Website

http://www.nexiahealth.com

Nexia Health Technologies Inc engaged in the development, sale, and support of application software and related services to customers in the healthcare industry in Canada and the United States. The company is engaged in the licensing and sale of its intellectual property. It provides Healthcare Technology solutions, which involves Cloud, Clearinghouse, eForms designer and Mobile application designer. The company generates revenue by selling monthly utilization of its application software and by selling perpetual licenses of the company's application software and related support and maintenance. The company discontinued all its operation.

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