HSTA (Hestia Insight) ROC % : 57.14% (As of Aug. 2024)

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What is Hestia Insight 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 %. Hestia Insight's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 57.14%.

As of today (2024-12-11), Hestia Insight's WACC % is 4.70%. Hestia Insight's ROC % is 1694.62% (calculated using TTM income statement data). Hestia Insight generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Hestia Insight ROC % Historical Data

The historical data trend for Hestia Insight'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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Hestia Insight ROC % Chart

Hestia Insight Annual Data

Trend

Nov22

Nov23

ROC %

-192.27

-290.38

Hestia Insight Quarterly Data
	Feb22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial					-619.35	-786.21	-271.84	5,935.48	57.14

Hestia Insight ROC % Calculation

Hestia Insight's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	-0.302 * ( 1 - 0% )	/	( (0.181	+	0.027)	/ 2 )
=	-0.302	/	0.104
=	-290.38 %

where

	Invested Capital		(A: Nov. 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	))
=	0.713	-	0.01	-	( 0.522	-	max(0, 0.034	-	0.557	+	0.522	))
=	0.181

	Invested Capital		(A: Nov. 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	))
=	0.194	-	0.016	-	( 0.167	-	max(0, 0.016	-	0.167	+	0.167	))
=	0.027

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

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	0.052 * ( 1 - 0% )	/	( (0.079	+	0.103)	/ 2 )
=	0.052	/	0.091
=	57.14 %

where

	Invested Capital		(Q: May. 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	))
=	1.387	-	0.029	-	( 1.338	-	max(0, 0.083	-	1.362	+	1.338	))
=	0.079

	Invested Capital		(Q: Aug. 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	))
=	1.06	-	0.03	-	( 0.987	-	max(0, 0.109	-	1.036	+	0.987	))
=	0.103

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

Hestia Insight (OTCPK:HSTA) 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, Hestia Insight's WACC % is 4.70%. Hestia Insight's ROC % is 1694.62% (calculated using TTM income statement data). Hestia Insight generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Hestia Insight ROC % Related Terms

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Hestia Insight Business Description

Industry

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Address

400 South 4th Street, Suite 500, Las Vegas, NV, USA, 89101

Website

http://www.hestiainsight.com

Hestia Insight Inc focuses on healthcare and biotech sectors through its subsidiaries: Hestia Investments and Hestia Vending. Hestia Investments offers consulting, supply sales, marketing, and capital markets advisory services to micro, small, and medium-sized companies. Hestia Vending operates in the healthy food, beverage, wellness, and smart vending industries. The company aims for strategic acquisitions of emerging growth companies with sciences and technologies, particularly in healthcare. Revenue comes from annual consulting fees from related party clients.