NetraMark Holdings (XCNQ:AIAI) ROC % : -12,452.17% (As of Mar. 2024)

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What is NetraMark Holdings 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 %. NetraMark Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -12,452.17%.

As of today (2024-06-06), NetraMark Holdings's WACC % is 8.50%. NetraMark Holdings's ROC % is -78.46% (calculated using TTM income statement data). NetraMark Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NetraMark Holdings ROC % Historical Data

The historical data trend for NetraMark Holdings'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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NetraMark Holdings ROC % Chart

NetraMark Holdings Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

ROC %

-311.87

-147.48

-133.13

NetraMark Holdings Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial										-94.05	-65.77	-	-17,252.17	-12,452.17

NetraMark Holdings ROC % Calculation

NetraMark Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-5.969 * ( 1 - 0% )	/	( (8.944	+	0.023)	/ 2 )
=	-5.969	/	4.4835
=	-133.13 %

where

	Invested Capital		(A: Sep. 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	))
=	9.198	-	1.064	-	( 0.015	-	max(0, 1.087	-	0.277	+	0.015	))
=	8.944

	Invested Capital		(A: Sep. 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	))
=	1.91	-	0.801	-	( 1.782	-	max(0, 0.824	-	1.91	+	1.782	))
=	0.023

NetraMark Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-2.864 * ( 1 - 0% )	/	( (0.023	+	0.023)	/ 2 )
=	-2.864	/	0.023
=	-12,452.17 %

where

	Invested Capital		(Q: Dec. 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	))
=	0.91	-	0.283	-	( 0.824	-	max(0, 0.306	-	0.91	+	0.824	))
=	0.023

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	0.485	-	0.24	-	( 0.26	-	max(0, 0.263	-	0.485	+	0.26	))
=	0.023

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

NetraMark Holdings (XCNQ:AIAI) 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, NetraMark Holdings's WACC % is 8.50%. NetraMark Holdings's ROC % is -78.46% (calculated using TTM income statement data). NetraMark Holdings 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.

NetraMark Holdings ROC % Related Terms

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NetraMark Holdings (XCNQ:AIAI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » NetraMark Holdings Inc (XCNQ:AIAI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

AINMF:USA

Address

1655 Dupont Street, Suite 101, Toronto, ON, CAN, M6P 3T1

Website

https://www.nurosene.com

NetraMark Holdings Inc is focused on the application of a totally unique Artificial Intelligence (AI) / Machine Learning (ML) solution targeted at the pharmaceutical industry in order to de-risk clinical trials. NetraMark has a proprietary technology that is capable of cutting through the combinatorial complexity that comes with dealing with heterogeneous patient populations to extract precisely defined personas of patients with respect to placebo and drug response, in addition to tolerability and adverse events. By using the client's own contemporaneous data, and having the capacity to learn from small data, the NetraAI tech extracts these personas to equip pharmaceutical companies with strategies to optimize their next trials for success.

Executives

Andrew Parks

Director

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