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Medical Care Service Company (NGO:2494) ROC % : 2.95% (As of Feb. 2013)


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What is Medical Care Service Company 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 %. Medical Care Service Company's annualized return on capital (ROC %) for the quarter that ended in Feb. 2013 was 2.95%.

As of today (2024-06-23), Medical Care Service Company's WACC % is 0.00%. Medical Care Service Company's ROC % is 0.00% (calculated using TTM income statement data). Medical Care Service Company earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Medical Care Service Company ROC % Historical Data

The historical data trend for Medical Care Service Company'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.

Medical Care Service Company ROC % Chart

Medical Care Service Company Annual Data
Trend Aug09 Aug10 Aug11
ROC %
7.26 13.01 12.45

Medical Care Service Company Quarterly Data
Aug10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.97 15.49 3.40 5.89 2.95

Medical Care Service Company ROC % Calculation

Medical Care Service Company's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2011 is calculated as:

ROC % (A: Aug. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2010 ) + Invested Capital (A: Aug. 2011 ))/ count )
=908.497 * ( 1 - 47.37% )/( (3742.722 + 3938.128)/ 2 )
=478.1419711/3840.425
=12.45 %

where

Invested Capital(A: Aug. 2010 )
=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))
=4686.561 - 85.995 - ( 857.844 - max(0, 1983.368 - 2926.089+857.844))
=3742.722

Invested Capital(A: Aug. 2011 )
=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))
=5535.127 - 100.497 - ( 1496.502 - max(0, 2076.872 - 3814.851+1496.502))
=3938.128

Medical Care Service Company's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2013 is calculated as:

ROC % (Q: Feb. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2012 ) + Invested Capital (Q: Feb. 2013 ))/ count )
=407.632 * ( 1 - 57.59% )/( (5879.968 + 5832.379)/ 2 )
=172.8767312/5856.1735
=2.95 %

where

Invested Capital(Q: Nov. 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))
=7141.927 - 117.375 - ( 1144.584 - max(0, 2318.941 - 4083.143+1144.584))
=5879.968

Invested Capital(Q: Feb. 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))
=6996.024 - 111.663 - ( 1051.982 - max(0, 2249.017 - 3946.641+1051.982))
=5832.379

Note: The Operating Income data used here is four times the quarterly (Feb. 2013) 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.

Medical Care Service Company  (NGO:2494) 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, Medical Care Service Company's WACC % is 0.00%. Medical Care Service Company's ROC % is 0.00% (calculated using TTM income statement data). Medical Care Service Company 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.

Medical Care Service Company ROC % Related Terms

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