Proto Script Pharmaceutical (Proto Script Pharmaceutical) ROC % : -29.22% (As of Sep. 2017)

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What is Proto Script Pharmaceutical 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 %. Proto Script Pharmaceutical's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was -29.22%.

As of today (2024-05-25), Proto Script Pharmaceutical's WACC % is 0.00%. Proto Script Pharmaceutical's ROC % is 0.00% (calculated using TTM income statement data). Proto Script Pharmaceutical earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Proto Script Pharmaceutical ROC % Historical Data

The historical data trend for Proto Script Pharmaceutical'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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Proto Script Pharmaceutical ROC % Chart

Proto Script Pharmaceutical Annual Data

Trend

May12

May13

May14

May15

May16

ROC %

Proto Script Pharmaceutical Quarterly Data
	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Sep16	Dec16	Mar17	Jun17	Sep17
ROC %	Get a 7-Day Free Trial															-	-1,583.33	-242.03	-106.84	-29.22

Proto Script Pharmaceutical ROC % Calculation

Proto Script Pharmaceutical's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2016 is calculated as:

	ROC % (A: May. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2015 )	+	Invested Capital (A: May. 2016 ))	/ count )
=	-0.033 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.033	/	0
=	%

where

	Invested Capital		(A: May. 2015 )
=	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	))
=	0.001	-	0.045	-	( 0.001	-	max(0, 0.045	-	0.001	+	0.001	))
=	0

	Invested Capital		(A: May. 2016 )
=	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	))
=	0.012	-	0.089	-	( 0.012	-	max(0, 0.089	-	0.012	+	0.012	))
=	0

Proto Script Pharmaceutical's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2017 is calculated as:

	ROC % (Q: Sep. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2017 )	+	Invested Capital (Q: Sep. 2017 ))	/ count )
=	-0.34 * ( 1 - 0% )	/	( (1.037	+	1.29)	/ 2 )
=	-0.34	/	1.1635
=	-29.22 %

where

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	0.166	-	0.337	-	( 0	-	max(0, 1.324	-	0.116	+	0	))
=	1.037

	Invested Capital		(Q: Sep. 2017 )
=	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	))
=	0.235	-	0.434	-	( 0	-	max(0, 1.676	-	0.187	+	0	))
=	1.29

Note: The Operating Income data used here is four times the quarterly (Sep. 2017) data.

Proto Script Pharmaceutical (OTCPK:PSCR) 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, Proto Script Pharmaceutical's WACC % is 0.00%. Proto Script Pharmaceutical's ROC % is 0.00% (calculated using TTM income statement data). Proto Script Pharmaceutical 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.

Proto Script Pharmaceutical ROC % Related Terms

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Proto Script Pharmaceutical (Proto Script Pharmaceutical) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Proto Script Pharmaceutical Corp (OTCPK:PSCR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9830 6th Street, Suite 103, Rancho Cucamonga, CA, USA, 91730

Website

http://www.psphomecare.com

Proto Script Pharmaceutical Corp is primarily in the business of repair power wheelchairs and scooters, which are classified as durable medical equipment (DME) products and reimbursable by healthcare insurance providers. It has various contracts with state and governmental insurance providers, among others. These contracts provide the company with the right to sell and repair DME and its health care insurance contracts allow it the ability to service patients nationally. The group currently has its presence of repair facilities in Las Vegas, Nevada, Rancho-Cucamonga, and Anaheim, California.

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