DFPHW (DFP Healthcare Acquisitions) ROC %: -0.69% (As of Sep. 2021)


What is DFP Healthcare Acquisitions ROC %?

DFP Healthcare Acquisitions DFPHW ROC % is -0.69% as of Sep. 2021. The stock has 1 warning sign investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. DFP Healthcare Acquisitions's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was -0.69%.

As of today (2026-06-26), DFP Healthcare Acquisitions's WACC % is 7.81%. DFP Healthcare Acquisitions's ROC % is -2.16% (calculated using TTM income statement data). DFP Healthcare Acquisitions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

DFP Healthcare Acquisitions  (NAS:DFPHW) 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, DFP Healthcare Acquisitions's WACC % is 7.81%. DFP Healthcare Acquisitions's ROC % is -2.16% (calculated using TTM income statement data). DFP Healthcare Acquisitions 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.

DFP Healthcare Acquisitions ROC % Related Terms

DFP Healthcare Acquisitions ROC % Historical Data

* Premium members only.

The historical data trend for DFP Healthcare Acquisitions'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.

DFP Healthcare Acquisitions ROC % Chart

DFP Healthcare Acquisitions Annual Data
Trend Dec19 Dec20
ROC %
0.00 -0.87

DFP Healthcare Acquisitions Semi-Annual Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROC % Get a 7-Day Free Trial -0.09 -0.22 -0.10 -1.15 -0.69

DFP Healthcare Acquisitions ROC % Calculation

DFP Healthcare Acquisitions's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

ROC % (A: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 ))/ count )
=-0.999 * ( 1 - 0% )/( (0.025 + 230.255)/ 2 )
=-0.999/115.14
=-0.87 %

where

Invested Capital(A: Dec. 2019 )
=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))
=0.05 - 0.027 - ( 0.025 - max(0, 0.027 - 0.025+0.025))
=0.025

Invested Capital(A: Dec. 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))
=231.324 - 0.268 - ( 0.917 - max(0, 0.268 - 1.069+0.917))
=230.255

DFP Healthcare Acquisitions's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

ROC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=-1.576 * ( 1 - 0% )/( (230.007 + 230.013)/ 2 )
=-1.576/230.01
=-0.69 %

where

Invested Capital(Q: 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))
=230.754 - 2.518 - ( 0.621 - max(0, 2.518 - 0.747+0.621))
=230.007

Invested Capital(Q: Sep. 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))
=230.3 - 3.634 - ( 0.205 - max(0, 3.634 - 0.287+0.205))
=230.013

Note: The Operating Income data used here is one times the annual (Sep. 2021) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -0.69% mean?
DFP Healthcare Acquisitions (DFPHW) has a ROC % of -0.69% as of Sep. 2021. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DFP Healthcare Acquisitions and its competitors.
Is DFP Healthcare Acquisitions' ROC % too high?
DFP Healthcare Acquisitions' current ROC % is -0.69%.
How does DFP Healthcare Acquisitions' ROC % compare to ?
DFP Healthcare Acquisitions' ROC % of -0.69% can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Diversified Financial Services company?
A good ROC % depends on the Diversified Financial Services industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DFP Healthcare Acquisitions and its competitors. DFP Healthcare Acquisitions's current ROC % is -0.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DFP Healthcare Acquisitions stock overvalued right now?
DFP Healthcare Acquisitions (DFPHW) has a current ROC % of -0.69%. The current ROC % is -0.69%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For DFP Healthcare Acquisitions (DFPHW), the current ROC % is -0.69% as of Sep. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

DFP Healthcare Acquisitions Business Description

Comparable Companies
Address 345 Park Avenue South, New York, NY, USA, 10010
DFP Healthcare Acquisitions Corp is a blank check company.