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HireQuest (HireQuest) ROC % : 18.36% (As of Dec. 2023)


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What is HireQuest 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 %. HireQuest's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 18.36%.

As of today (2024-04-30), HireQuest's WACC % is 10.54%. HireQuest's ROC % is 10.05% (calculated using TTM income statement data). HireQuest earns returns that do not match up to its cost of capital. It will destroy value as it grows.


HireQuest ROC % Historical Data

The historical data trend for HireQuest'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.

* Premium members only.

HireQuest ROC % Chart

HireQuest Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.80 12.52 15.32 18.70 10.20

HireQuest Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.33 12.49 9.81 7.53 18.36

HireQuest ROC % Calculation

HireQuest'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 )
=10.641 * ( 1 - 17.29% )/( (84.338 + 88.18)/ 2 )
=8.8011711/86.259
=10.20 %

where

HireQuest's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=9.772 * ( 1 - -65.84% )/( (88.334 + 88.18)/ 2 )
=16.2058848/88.257
=18.36 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

* 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.


HireQuest  (NAS:HQI) 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, HireQuest's WACC % is 10.54%. HireQuest's ROC % is 10.05% (calculated using TTM income statement data). HireQuest 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.


HireQuest ROC % Related Terms

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HireQuest (HireQuest) Business Description

Traded in Other Exchanges
N/A
Address
111 Springhall Drive, Goose Creek, SC, USA, 29445
HireQuest Inc is a nationwide franchisor of offices providing direct-dispatch, executive search, and commercial staffing solutions in the light industrial and blue-collar segments of the staffing industry and traditional commercial staffing. The company's franchisees provide various types of temporary personnel through two business models operating under the trade names HireQuest Direct, HireQuest, Snelling, DriverQuest, HireQuest Health, Northbound Executive Search, and MRI. The primary source of revenue for the company is royalty fees based on the operation of its franchised offices.
Executives
Lawrence F Hagenbuch director 600 CORPORATION DRIVE, PENDLETON IN 46064
R. Rimmy Malhotra director C/O COMMAND CENTER, INC., 3609 S WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235
Kathleen M Shanahan director 24301 WALDEN CENTER DRIVE, BONITA SPRINGS FL 34134
Jack A. Olmstead director 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Edward Jackson director, 10 percent owner 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Richard Hermanns director, 10 percent owner, officer: President and CEO 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
David S. Burnett officer: CFO C/O INTERLINK ELECTRONICS, INC., 31248 OAK CREST DRIVE, SUITE 110, WESTLAKE VILLAGE CA 91361
Richard F & Lisa S Hermanns Dynasty Trust Dated July 16, 2008 10 percent owner 240 S PINEAPPLE AVENUE, 10TH FLOOR, SARASOTA FL 34236
Jd Smith director 13506 SUMMERPORT VILLAGE PARKWAY #160, WINDERMERE FL 34786
John Mcannar officer: Secretary, VP and GC 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Smith Cory officer: CFO and Treasurer 360 S. MONROE STREET, APT. 707, DENVER CO 80209
Payne Brown director 111 SPRINGHALL DRIVE, GOOSE CREEK SC 29445
Brendan Simaytis officer: Executive VP & General Counsel COMMAND CENTER, INC., 3609 S. WADSWORTH BLVD., SUITE 250, LAKEWOOD CO 80235
Steven Mark Bathgate director 5350 S ROSLYN, SUITE 380, ENGLEWOOD CO 80111
Galen G Vetter director 500 EAST GRANT STREET, #2011, MINNEAPOLIS MN 55404