MSGP (MedSmart Group) ROC %: 7.11% (As of Sep. 2014)

What is MedSmart Group ROC %?

MedSmart Group MSGP ROC % is 7.11% as of Sep. 2014.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. MedSmart Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2014 was 7.11%.

As of today (2026-06-25), MedSmart Group's WACC % is 0.00%. MedSmart Group's ROC % is 0.00% (calculated using TTM income statement data). MedSmart Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

MedSmart Group (OTCPK:MSGP) 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, MedSmart Group's WACC % is 0.00%. MedSmart Group's ROC % is 0.00% (calculated using TTM income statement data). MedSmart Group 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.

MedSmart Group ROC % Related Terms

MedSmart Group ROC % Historical Data

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The historical data trend for MedSmart Group'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.

MedSmart Group ROC % Chart

MedSmart Group Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC %

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-4.78

-10.51

-10.62

-12.30

-6.04

MedSmart Group Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROC %	Get a 7-Day Free Trial															-16.29	11.22	5.66	6.08	7.11

MedSmart Group ROC % Calculation

MedSmart Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-0.273 * ( 1 - 0% )	/	( (6.212	+	2.827)	/ 2 )
=	-0.273	/	4.5195
=	-6.04 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	0.281	-	1.119	-	( 0.001	-	max(0, 7.146	-	0.096	+	0.001	))
=	6.212

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	0.083	-	1.435	-	( 0.003	-	max(0, 4.257	-	0.078	+	0.003	))
=	2.827

MedSmart Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2014 is calculated as:

	ROC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	0.08 * ( 1 - 0% )	/	( (1.12	+	1.129)	/ 2 )
=	0.08	/	1.1245
=	7.11 %

where

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	0.083	-	1.887	-	( 0	-	max(0, 3.002	-	0.078	+	0	))
=	1.12

	Invested Capital		(Q: Sep. 2014 )
=	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	))
=	0.088	-	1.872	-	( 0	-	max(0, 2.997	-	0.084	+	0	))
=	1.129

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of 7.11% mean?

MedSmart Group (MSGP) has a ROC % of 7.11% as of Sep. 2014. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on MedSmart Group and its competitors.

Is MedSmart Group's ROC % too high?

MedSmart Group's current ROC % is 7.11%. The Healthcare Providers & Services industry median ROC % is 3.06. MedSmart Group's value of 7.11% is 132.4% above this industry median.

How does MedSmart Group's ROC % compare to BCYP and MBIOF?

MedSmart Group's ROC % of 7.11% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.06. MedSmart Group's value of 7.11% is 132.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for a Healthcare Providers & Services company?

The median ROC % among Healthcare Providers & Services companies is 3.06, based on 671 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MedSmart Group's current ROC % of 7.11% is 132.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on MedSmart Group and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MedSmart Group's current ROC % is 7.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is MedSmart Group stock overvalued right now?

MedSmart Group (MSGP) has a current ROC % of 7.11%. The current ROC % is 7.11% and 132.4% above the Healthcare Providers & Services industry median of 3.06. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For MedSmart Group (MSGP), the current ROC % is 7.11% as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

MedSmart Group Business Description

Industry Healthcare Healthcare Providers & Services

Comparable Companies BCYP MBIOF LOGX TTMZD SCVOF ISIG PROM MKGI INUV SHSP FSNT HHS CLEZF MCHX YUGVF NCMI MDCA FRTG INWK QUOT

Address 26 Broadway, Suite 934, New York, NY, USA, 10004

Website https://www.medsmartgroup.com

MedSmart Group Inc is a men wellness center. It is a professional network of medical centers specializing in Anti-Aging Treatments that improve the overall health and quality-of-life of male patients in a comfortable, casual and discreet setting.