HQDA Elderly Life Network (HQDA Elderly Life Network) ROC % : -0.10% (As of Mar. 2022)

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What is HQDA Elderly Life Network 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 %. HQDA Elderly Life Network's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was -0.10%.

As of today (2024-04-27), HQDA Elderly Life Network's WACC % is 0.00%. HQDA Elderly Life Network's ROC % is 0.00% (calculated using TTM income statement data). HQDA Elderly Life Network earns returns that do not match up to its cost of capital. It will destroy value as it grows.

HQDA Elderly Life Network ROC % Historical Data

The historical data trend for HQDA Elderly Life Network'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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HQDA Elderly Life Network ROC % Chart

HQDA Elderly Life Network Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

ROC %

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-88.24

-3.87

-6.68

-3.26

-0.81

HQDA Elderly Life Network Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROC %	Get a 7-Day Free Trial															-2.20	0.17	-1.23	0.58	-0.10

HQDA Elderly Life Network ROC % Calculation

HQDA Elderly Life Network's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2021 is calculated as:

	ROC % (A: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2020 )	+	Invested Capital (A: Jun. 2021 ))	/ count )
=	-0.222 * ( 1 - -0.08% )	/	( (26.229	+	28.872)	/ 2 )
=	-0.2221776	/	27.5505
=	-0.81 %

where

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	25.354	-	3.59	-	( 0.12	-	max(0, 4.832	-	0.367	+	0.12	))
=	26.229

	Invested Capital		(A: Jun. 2021 )
=	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	))
=	26.491	-	3.965	-	( 0.028	-	max(0, 6.452	-	0.106	+	0.028	))
=	28.872

HQDA Elderly Life Network's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	-0.028 * ( 1 - 0% )	/	( (29.212	+	29.553)	/ 2 )
=	-0.028	/	29.3825
=	-0.10 %

where

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	26.523	-	3.955	-	( 0.019	-	max(0, 6.745	-	0.101	+	0.019	))
=	29.212

	Invested Capital		(Q: Mar. 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	))
=	26.574	-	3.913	-	( 0.012	-	max(0, 6.991	-	0.099	+	0.012	))
=	29.553

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

HQDA Elderly Life Network (OTCPK:HQDA) 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, HQDA Elderly Life Network's WACC % is 0.00%. HQDA Elderly Life Network's ROC % is 0.00% (calculated using TTM income statement data). HQDA Elderly Life Network 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.

HQDA Elderly Life Network ROC % Related Terms

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HQDA Elderly Life Network (HQDA Elderly Life Network) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » HQDA Elderly Life Network Corp (OTCPK:HQDA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8780 Valley Boulevard, Suite J, Rosemead, CA, USA, 91770

Website

http://www.hqda.net

HQDA Elderly Life Network Corp is engaged in providing seniors living residences with a supportive, home life setting with care and services, including activities of daily living, life enrichment, and health and wellness in certain cities in China. The company also operates a network carrier, providing scheduled air transportation to passengers, and travel destination services to leisure travelers. It operates in a single segment being senior housing and retirement services.

Executives

Ann-marie Cederholm	director, officer: CFO	102-137 EAST 1ST STREET, NORTH VANCOUVER A1 V7L 1B2
Timothy A Coupland	director, 10 percent owner, officer: CEO	1090 SHAMAN CRES, DELTA A1 V4M 2L7
Brian David Game	director	3140 RICHMOND STREET, RICHMOND A1 V7E 2V6

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