InfuSystems Holdings (FRA:1TZ) ROC % : 8.58% (As of Sep. 2024)

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What is InfuSystems Holdings 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 %. InfuSystems Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 8.58%.

As of today (2025-03-02), InfuSystems Holdings's WACC % is 9.91%. InfuSystems Holdings's ROC % is 2.44% (calculated using TTM income statement data). InfuSystems Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

InfuSystems Holdings ROC % Historical Data

The historical data trend for InfuSystems Holdings'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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InfuSystems Holdings ROC % Chart

InfuSystems Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.97

24.70

3.81

0.26

2.05

InfuSystems Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															4.39	0.52	-3.07	4.24	8.58

InfuSystems Holdings ROC % Calculation

InfuSystems Holdings'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 )
=	3.749 * ( 1 - 52.92% )	/	( (85.792	+	86.817)	/ 2 )
=	1.7650292	/	86.3045
=	2.05 %

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	))
=	93.822	-	7.874	-	( 0.156	-	max(0, 13.657	-	23.391	+	0.156	))
=	85.792

	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	))
=	94.373	-	7.344	-	( 0.212	-	max(0, 14.409	-	28.079	+	0.212	))
=	86.817

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

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	11.768 * ( 1 - 35.11% )	/	( (91.452	+	86.51)	/ 2 )
=	7.6362552	/	88.981
=	8.58 %

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	))
=	100.822	-	9.234	-	( 0.136	-	max(0, 14.753	-	30.576	+	0.136	))
=	91.452

	Invested Capital		(Q: Sep. 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	))
=	94.878	-	8.026	-	( 0.342	-	max(0, 15.259	-	30.285	+	0.342	))
=	86.51

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

InfuSystems Holdings (FRA:1TZ) 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, InfuSystems Holdings's WACC % is 9.91%. InfuSystems Holdings's ROC % is 2.44% (calculated using TTM income statement data). InfuSystems Holdings 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.

InfuSystems Holdings ROC % Related Terms

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InfuSystems Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » InfuSystems Holdings Inc (FRA:1TZ) » Definitions » ROC %

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INFU:USA 1TZ:Germany

Address

3851 West Hamlin Road, Rochester Hills, MI, USA, 48309

Website

http://www.infusystem.com

InfuSystems Holdings Inc is a health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The first platform is Patient Services, providing the last-mile solution for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The Patient segment is comprised of Oncology, Pain Management and Wound Therapy businesses. The second platform, Device Solutions, supports the Patient Services platform and leverages strong service orientation to win incremental business from its direct payer clients. The Device segment is comprised of direct payer rentals, pump and consumable sales, and biomedical services and repair.

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