HeraMED (FRA:1I4) ROC % : -69.05% (As of Dec. 2024)

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What is HeraMED 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 %. HeraMED's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -69.05%.

As of today (2025-03-16), HeraMED's WACC % is 11.14%. HeraMED's ROC % is -357.29% (calculated using TTM income statement data). HeraMED earns returns that do not match up to its cost of capital. It will destroy value as it grows.

HeraMED ROC % Historical Data

The historical data trend for HeraMED'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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HeraMED ROC % Chart

HeraMED Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-265.20

-156.57

-127.37

-386.27

-455.22

HeraMED Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial								-264.11	-290.77	-332.30	-572.06	-69.05

HeraMED ROC % Calculation

HeraMED's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-5.317 * ( 1 - 0% )	/	( (1.226	+	1.11)	/ 2 )
=	-5.317	/	1.168
=	-455.22 %

where

	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	))
=	2.712	-	1.101	-	( 0.974	-	max(0, 1.383	-	1.768	+	0.974	))
=	1.226

	Invested Capital		(A: Dec. 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	))
=	4.282	-	0.632	-	( 2.988	-	max(0, 1.007	-	3.547	+	2.988	))
=	1.11

HeraMED's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-1.082 * ( 1 - 0% )	/	( (2.024	+	1.11)	/ 2 )
=	-1.082	/	1.567
=	-69.05 %

where

	Invested Capital		(Q: Jun. 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	))
=	4.311	-	0.955	-	( 1.954	-	max(0, 1.807	-	3.139	+	1.954	))
=	2.024

	Invested Capital		(Q: Dec. 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	))
=	4.282	-	0.632	-	( 2.988	-	max(0, 1.007	-	3.547	+	2.988	))
=	1.11

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

HeraMED (FRA:1I4) 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, HeraMED's WACC % is 11.14%. HeraMED's ROC % is -357.29% (calculated using TTM income statement data). HeraMED 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.

HeraMED ROC % Related Terms

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HeraMED Business Description

Industry

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HMD:Australia

Address

201, 697 Burke Road, Suite 4, Camberwell, VIC, AUS, 3124

Website

https://www.hera-med.com

HeraMED Ltd is engaged in developing, connected pregnancy monitoring solutions for home and professional use. It has developed a foetal heartbeat monitor called HeraBEAT which is a medical-grade, clinically-validated, smart and connected Ultrasound Foetal Doppler device predominantly for use by an expectant mother to self-monitor her foetus' heart rate (FHR). It is also focused on the commercialization and deployment of its HeraCARE pregnancy monitoring solution. Geographically, the company generates a majority of its revenue from the United States of America followed by Australia and Israel.

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