OHCS (Optimus Healthcare Svcs) ROC % : -93.47% (As of Sep. 2024)

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What is Optimus Healthcare Svcs 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 %. Optimus Healthcare Svcs's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -93.47%.

As of today (2024-12-11), Optimus Healthcare Svcs's WACC % is 21.64%. Optimus Healthcare Svcs's ROC % is -67.10% (calculated using TTM income statement data). Optimus Healthcare Svcs earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Optimus Healthcare Svcs ROC % Historical Data

The historical data trend for Optimus Healthcare Svcs'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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Optimus Healthcare Svcs ROC % Chart

Optimus Healthcare Svcs Annual Data

Trend

Dec98

Dec99

Dec00

Dec01

Dec02

Dec08

Dec21

Dec22

Dec23

ROC %

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-5.39

-0.11

-131.48

-233.80

-227.87

Optimus Healthcare Svcs Quarterly Data
	Sep03	Mar07	Jun07	Sep07	Mar08	Jun08	Sep08	Dec08	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-86.60	-131.97	32.08	-74.07	-93.47

Optimus Healthcare Svcs ROC % Calculation

Optimus Healthcare Svcs'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 )
=	-8.573 * ( 1 - -0.02% )	/	( (1.427	+	6.099)	/ 2 )
=	-8.5747146	/	3.763
=	-227.87 %

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	))
=	2.94	-	1.32	-	( 0.895	-	max(0, 1.533	-	1.726	+	0.895	))
=	1.427

	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	))
=	1.07	-	2.198	-	( 0.1	-	max(0, 8.034	-	0.807	+	0.1	))
=	6.099

Optimus Healthcare Svcs'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 )
=	-6.404 * ( 1 - 0% )	/	( (6.832	+	6.871)	/ 2 )
=	-6.404	/	6.8515
=	-93.47 %

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	))
=	0.863	-	2.77	-	( 0.013	-	max(0, 9.373	-	0.634	+	0.013	))
=	6.832

	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	))
=	0.63	-	3.183	-	( 0.152	-	max(0, 9.842	-	0.418	+	0.152	))
=	6.871

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

Optimus Healthcare Svcs (OTCPK:OHCS) 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, Optimus Healthcare Svcs's WACC % is 21.64%. Optimus Healthcare Svcs's ROC % is -67.10% (calculated using TTM income statement data). Optimus Healthcare Svcs 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.

Optimus Healthcare Svcs ROC % Related Terms

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Optimus Healthcare Svcs Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Optimus Healthcare Svcs Inc (OTCPK:OHCS) » Definitions » ROC %

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Address

1400 Old Country Road, Suite 306, Westbury, NY, USA, 11590

Website

https://www.optimushealthcare.com

Optimus Healthcare Svcs Inc focuses on acquiring controlling interests in healthcare-related businesses. The company is dedicated to advancing access to clinical trial research and simplifying access to vaccines and pharmaceutical products. It currently operates through its portfolio companies, Clinical Research Alliance, Inc. (CRA), and Worker's Health Rx (d/b/a "Vitality Rx"). The vision is to grow by acquiring controlling interests in healthcare-related businesses with products and services that improve healthcare access and outcomes. Optimus aims to empower physicians and patients with information and tools for informed healthcare decisions.