Envision Healthcare (Envision Healthcare) ROIC % : 5.26% (As of Jun. 2018)

View and export this data going back to 1997. Start your Free Trial

What is Envision Healthcare ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Envision Healthcare's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2018 was 5.26%.

As of today (2024-04-25), Envision Healthcare's WACC % is 0.00%. Envision Healthcare's ROIC % is 0.00% (calculated using TTM income statement data). Envision Healthcare earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Envision Healthcare ROIC % Historical Data

The historical data trend for Envision Healthcare's ROIC % 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.

* Premium members only.

Envision Healthcare ROIC % Chart

Envision Healthcare Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROIC %

Get a 7-Day Free Trial

13.77

9.07

7.86

5.27

-65.07

Envision Healthcare Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
ROIC %	Get a 7-Day Free Trial															3.64	3.34	-1.71	4.12	5.26

Competitive Comparison of Envision Healthcare's ROIC %

For the Medical Care Facilities subindustry, Envision Healthcare's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Envision Healthcare's ROIC % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Envision Healthcare's ROIC % distribution charts can be found below:

* The bar in red indicates where Envision Healthcare's ROIC % falls into.

Envision Healthcare ROIC % Calculation

Envision Healthcare's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROIC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	669.7 * ( 1 - 1607.77% )	/	( (15621.3	+	15412.5)	/ 2 )
=	-10097.53569	/	15516.9
=	-65.07 %

where

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	16708.9	-	770.7	-	( 316.9	-	max(0, 1154.3	-	2411.3	+	316.9	))
=	15621.3

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	16572.6	-	847.9	-	( 312.2	-	max(0, 1395.1	-	4744.3	+	312.2	))
=	15412.5

Envision Healthcare's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2018 is calculated as:

	ROIC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2018 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	649.6 * ( 1 - 5.37% )	/	( (12608	+	10764.2)	/ 2 )
=	614.71648	/	11686.1
=	5.26 %

where

	Invested Capital		(Q: 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	))
=	14384.5	-	1009.1	-	( 767.4	-	max(0, 1118.3	-	2534	+	767.4	))
=	12608

	Invested Capital		(Q: Jun. 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	))
=	12313.1	-	955.4	-	( 593.5	-	max(0, 968.4	-	2365.3	+	593.5	))
=	10764.2

Note: The Operating Income data used here is four times the quarterly (Jun. 2018) data.

Envision Healthcare (NYSE:EVHC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Envision Healthcare's WACC % is 0.00%. Envision Healthcare's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Envision Healthcare ROIC % Related Terms

Thank you for viewing the detailed overview of Envision Healthcare's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Envision Healthcare (Envision Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Envision Healthcare Corp (NYSE:EVHC) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.evhc.net

AmSurg acquires and develops practice-based ambulatory surgery centers in partnership with physician groups. The company has a majority interest in 264 surgery centers in 35 states. AmSurg centers are typically single-specialty and perform procedures in the areas of gastroenterology, ophthalmology, and orthopedics.