Wearable Health Solutions (Wearable Health Solutions) ROC % : -10.41% (As of Dec. 2023)

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What is Wearable Health Solutions 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 %. Wearable Health Solutions's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -10.41%.

As of today (2024-04-28), Wearable Health Solutions's WACC % is 4.34%. Wearable Health Solutions's ROC % is -55.94% (calculated using TTM income statement data). Wearable Health Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Wearable Health Solutions ROC % Historical Data

The historical data trend for Wearable Health Solutions'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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Wearable Health Solutions ROC % Chart

Wearable Health Solutions Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-31.37

-28.12

-120.34

-512.47

-87.99

Wearable Health Solutions Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-108.69	-95.74	-81.74	-44.00	-10.41

Wearable Health Solutions ROC % Calculation

Wearable Health Solutions's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-2.294 * ( 1 - 0% )	/	( (2.041	+	3.173)	/ 2 )
=	-2.294	/	2.607
=	-87.99 %

where

	Invested Capital		(A: Jun. 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	))
=	0.339	-	0.432	-	( 0.071	-	max(0, 2.431	-	0.297	+	0.071	))
=	2.041

	Invested Capital		(A: Jun. 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	))
=	0.223	-	0.68	-	( 0.136	-	max(0, 3.782	-	0.152	+	0.136	))
=	3.173

Wearable Health Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.288 * ( 1 - 0% )	/	( (2.936	+	2.599)	/ 2 )
=	-0.288	/	2.7675
=	-10.41 %

where

	Invested Capital		(Q: 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	))
=	0.125	-	0.681	-	( 0.011	-	max(0, 3.553	-	0.061	+	0.011	))
=	2.936

	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	))
=	0.09	-	0.63	-	( 0	-	max(0, 3.171	-	0.032	+	0	))
=	2.599

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

Wearable Health Solutions (OTCPK:WHSI) 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, Wearable Health Solutions's WACC % is 4.34%. Wearable Health Solutions's ROC % is -55.94% (calculated using TTM income statement data). Wearable Health Solutions 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.

Wearable Health Solutions ROC % Related Terms

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Wearable Health Solutions (Wearable Health Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Wearable Health Solutions Inc (OTCPK:WHSI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2901 Pacific Coast Highway, Suite 200, Newport Beach, CA, USA, 92663

Website

https://www.wearablehealthsolutions.com

Wearable Health Solutions Inc is engaged in manufacturing medical alarm devices which are used to summon help in the event of an emergency. The company provides mobile health (mHealth) products and services to be used by customers in case of an emergency. As a provider of personal emergency devices, it provides wearable healthcare products, tracking services, and turn-key solutions that enable its users to be proactive with their health, as well as safe and protected.

Executives

Sandor Capital Master Fund, L.p.

10 percent owner

2828 ROUTH STREET, SUITE 500, DALLAS TX 75201