CardieX (ASX:CDX) ROC % : 17.70% (As of Dec. 2023)

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What is CardieX 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 %. CardieX's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 17.70%.

As of today (2024-05-16), CardieX's WACC % is 13.38%. CardieX's ROC % is -112.86% (calculated using TTM income statement data). CardieX earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CardieX ROC % Historical Data

The historical data trend for CardieX'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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CardieX ROC % Chart

CardieX Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-60.42

-43.97

-121.83

-177.33

-194.85

CardieX Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-313.97	-213.78	-202.68	-248.15	17.70

CardieX ROC % Calculation

CardieX'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 )
=	-19.942 * ( 1 - 0% )	/	( (10.439	+	10.03)	/ 2 )
=	-19.942	/	10.2345
=	-194.85 %

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	))
=	12.378	-	2.225	-	( 1.456	-	max(0, 5.116	-	4.83	+	1.456	))
=	10.439

	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	))
=	14.537	-	7.46	-	( 6.274	-	max(0, 14.796	-	11.843	+	6.274	))
=	10.03

CardieX'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1.694 * ( 1 - 0% )	/	( (10.03	+	9.113)	/ 2 )
=	1.694	/	9.5715
=	17.70 %

where

	Invested Capital		(Q: 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	))
=	14.537	-	7.46	-	( 6.274	-	max(0, 14.796	-	11.843	+	6.274	))
=	10.03

	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	))
=	16.866	-	7.431	-	( 9.285	-	max(0, 14.208	-	14.53	+	9.285	))
=	9.113

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

CardieX (ASX:CDX) 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, CardieX's WACC % is 13.38%. CardieX's ROC % is -112.86% (calculated using TTM income statement data). CardieX 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.

CardieX ROC % Related Terms

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CardieX (ASX:CDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » CardieX Ltd (ASX:CDX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

55 Lime Street, Suite 301, Level 3, Sydney, NSW, AUS, 2000

Website

https://www.cardiex.com

CardieX Ltd is a global health technology company, developing solutions for health disorders. The AtCor Medical division develops medical devices for measuring arterial stiffness and central blood pressure waveforms based on its patented SphygmoCor technology. It also develops and licenses its Arty platform consisting of physiological and health analytics for wearable devices. It reports in a single segment being sales of cardiovascular devices and services to hospitals, clinics, research institutions, and pharmaceutical companies. The company has three reportable segments by geographic area namely the Americas includes, global pharmaceutical trials business, Europe includes, the Middle East and Africa and the Asia Pacific includes, Asia and Australia/New Zealand.

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