Hydreight Technologies (FRA:SO6) ROC % : 17.97% (As of Sep. 2024)

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What is Hydreight Technologies 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 %. Hydreight Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 17.97%.

As of today (2024-12-12), Hydreight Technologies's WACC % is 9.19%. Hydreight Technologies's ROC % is -27.86% (calculated using TTM income statement data). Hydreight Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hydreight Technologies ROC % Historical Data

The historical data trend for Hydreight Technologies'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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Hydreight Technologies ROC % Chart

Hydreight Technologies Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-383.33

-162.64

-96.98

-146.98

-68.75

Hydreight Technologies Quarterly Data
	Dec19	Dec20	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial										-66.07	-135.13	-30.34	22.59	17.97

Hydreight Technologies ROC % Calculation

Hydreight Technologies'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 )
=	-1.001 * ( 1 - 0% )	/	( (1.387	+	1.525)	/ 2 )
=	-1.001	/	1.456
=	-68.75 %

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	))
=	2.01	-	1.049	-	( 1.69	-	max(0, 2.245	-	1.819	+	1.69	))
=	1.387

	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	))
=	1.78	-	1.856	-	( 1.219	-	max(0, 3.012	-	1.411	+	1.219	))
=	1.525

Hydreight Technologies'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 )
=	0.312 * ( 1 - 0% )	/	( (1.653	+	1.82)	/ 2 )
=	0.312	/	1.7365
=	17.97 %

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	))
=	1.814	-	1.491	-	( 0.95	-	max(0, 2.48	-	1.15	+	0.95	))
=	1.653

	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	))
=	1.863	-	1.517	-	( 0.806	-	max(0, 2.504	-	1.03	+	0.806	))
=	1.82

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

Hydreight Technologies (FRA:SO6) 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, Hydreight Technologies's WACC % is 9.19%. Hydreight Technologies's ROC % is -27.86% (calculated using TTM income statement data). Hydreight Technologies 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.

Hydreight Technologies ROC % Related Terms

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Hydreight Technologies Business Description

Industry

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Address

1500 West Georgia Street, Suite 800, Vancouver, BC, CAN, V6G 2Z6

Website

https://www.hydreight.com

Hydreight Technologies Inc is a home healthcare and wellness platform that bridges the gap between provider compliance and patient convenience, empowering nurses, med spa technicians, and other licensed healthcare professionals. It delivers services independently, on its own terms, or adds mobile services to existing location-based operations. The platform includes a built-in, easy-to-use suite of fully-integrated tools for accounting, documentation, sales, inventory, booking, managing patient data, and more, Hydreight has a 503B pharmacy license and is a U.S. certified e-script and telemedicine provider that allows it to provide services in over 50 states.

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