First Choice Healthcare Solutions (First Choice Healthcare Solutions) ROC % : -8.75% (As of Mar. 2024)

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What is First Choice Healthcare 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 %. First Choice Healthcare Solutions's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -8.75%.

As of today (2024-06-20), First Choice Healthcare Solutions's WACC % is 6.03%. First Choice Healthcare Solutions's ROC % is -2.19% (calculated using TTM income statement data). First Choice Healthcare Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

First Choice Healthcare Solutions ROC % Historical Data

The historical data trend for First Choice Healthcare 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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First Choice Healthcare Solutions ROC % Chart

First Choice Healthcare Solutions Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec22

Dec23

ROC %

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-10.43

0.72

-30.50

-45.77

-12.33

First Choice Healthcare Solutions Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec22	Mar23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-5.37	-	-25.69	-	-8.75

First Choice Healthcare Solutions ROC % Calculation

First Choice Healthcare Solutions'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 )
=	-2.41 * ( 1 - 0% )	/	( (16.77	+	22.327)	/ 2 )
=	-2.41	/	19.5485
=	-12.33 %

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	))
=	6.516	-	9.993	-	( 0.007	-	max(0, 21.579	-	1.332	+	0.007	))
=	16.77

	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	))
=	3.123	-	8.411	-	( 0.013	-	max(0, 27.927	-	0.312	+	0.013	))
=	22.327

First Choice Healthcare Solutions'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 )
=	-1.988 * ( 1 - 0% )	/	( (22.327	+	23.137)	/ 2 )
=	-1.988	/	22.732
=	-8.75 %

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	))
=	3.123	-	8.411	-	( 0.013	-	max(0, 27.927	-	0.312	+	0.013	))
=	22.327

	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	))
=	3.071	-	8.914	-	( 0.009	-	max(0, 29.327	-	0.347	+	0.009	))
=	23.137

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

First Choice Healthcare Solutions (OTCPK:FCHS) 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, First Choice Healthcare Solutions's WACC % is 6.03%. First Choice Healthcare Solutions's ROC % is -2.19% (calculated using TTM income statement data). First Choice Healthcare 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.

First Choice Healthcare Solutions ROC % Related Terms

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First Choice Healthcare Solutions (First Choice Healthcare Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » First Choice Healthcare Solutions Inc (OTCPK:FCHS) » Definitions » ROC %

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Address

95 Bulldog Boulevard, Suite 202, Melbourne, FL, USA, 32901

Website

https://www.myfchs.com

First Choice Healthcare Solutions Inc is engaged in implementing a defined growth strategy aimed at building a network of localized, integrated healthcare services platforms comprised of primary care using doctors, nurse practitioners, health and well services (anti-aging, weight management and stem cells), rehabilitative therapy, pain management, and pharmacy- services. in markets throughout the U.S.

Executives

Gary Pickett	officer: Chief Financial Officer	9958 LAKE SEMINOLE DR. W., LARGO FL 33773
Michael J. West	other: Former Officer and Owner	16325 EAST DORADO AVE., CENTENNIAL CO 80111
Stephen H. West	director, officer: Secretary	16325 EAST DORADO AVE., CENTENNIAL CO 80111