CloudMD Software & Services (CloudMD Software & Services) ROC % : -21.12% (As of Mar. 2024)

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What is CloudMD Software & Services 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 %. CloudMD Software & Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -21.12%.

As of today (2024-06-23), CloudMD Software & Services's WACC % is 8.78%. CloudMD Software & Services's ROC % is -14.60% (calculated using TTM income statement data). CloudMD Software & Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CloudMD Software & Services ROC % Historical Data

The historical data trend for CloudMD Software & Services'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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CloudMD Software & Services ROC % Chart

CloudMD Software & Services Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-38.66

-22.84

-8.08

-11.59

-14.87

CloudMD Software & Services Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-11.99	-13.27	-11.08	-18.31	-21.12

CloudMD Software & Services ROC % Calculation

CloudMD Software & Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-14.096 * ( 1 - 6.5% )	/	( (123.215	+	54.098)	/ 2 )
=	-13.17976	/	88.6565
=	-14.87 %

where

	Invested Capital		(A: Dec. 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	))
=	137.239	-	15.393	-	( 17.709	-	max(0, 39.818	-	38.449	+	17.709	))
=	123.215

	Invested Capital		(A: 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	))
=	62.544	-	13.343	-	( 6.656	-	max(0, 29.251	-	24.354	+	6.656	))
=	54.098

CloudMD Software & Services's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-10.996 * ( 1 - -2.89% )	/	( (54.098	+	53.035)	/ 2 )
=	-11.3137844	/	53.5665
=	-21.12 %

where

	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	))
=	62.544	-	13.343	-	( 6.656	-	max(0, 29.251	-	24.354	+	6.656	))
=	54.098

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	59.177	-	13.008	-	( 3.816	-	max(0, 30.265	-	23.399	+	3.816	))
=	53.035

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

CloudMD Software & Services (OTCPK:DOCRF) 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, CloudMD Software & Services's WACC % is 8.78%. CloudMD Software & Services's ROC % is -14.60% (calculated using TTM income statement data). CloudMD Software & Services 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.

CloudMD Software & Services ROC % Related Terms

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CloudMD Software & Services (CloudMD Software & Services) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » CloudMD Software & Services Inc (OTCPK:DOCRF) » Definitions » ROC %

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DOC:Canada

Address

885 West Georgia Street, 2200 HSBC Building, Vancouver, BC, CAN, V6C 3E8

Website

https://www.cloudmd.ca

CloudMD Software & Services Inc is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The company offers SAAS-based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). It has two segments Digital Health Solutions and Enterprise Health Solutions.