Mytrex Health Technologies (ROCO:4431) ROC % : -10.50% (As of Dec. 2023)

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What is Mytrex Health Technologies 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 %. Mytrex Health Technologies's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -10.50%.

As of today (2024-05-17), Mytrex Health Technologies's WACC % is 4.60%. Mytrex Health Technologies's ROC % is -8.74% (calculated using TTM income statement data). Mytrex Health Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mytrex Health Technologies ROC % Historical Data

The historical data trend for Mytrex Health Technologies'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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Mytrex Health Technologies ROC % Chart

Mytrex Health Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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5.33

101.37

-3.58

-8.25

-8.74

Mytrex Health Technologies Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-7.39	-22.27	-5.12	-7.02	-10.50

Mytrex Health Technologies ROC % Calculation

Mytrex Health Technologies'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 )
=	-70.559 * ( 1 - -1.94% )	/	( (833.952	+	812.296)	/ 2 )
=	-71.9278446	/	823.124
=	-8.74 %

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	))
=	1488.054	-	167.575	-	( 486.527	-	max(0, 357.421	-	857.42	+	486.527	))
=	833.952

	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	))
=	1258.189	-	215.711	-	( 240.749	-	max(0, 441.752	-	671.934	+	240.749	))
=	812.296

Mytrex Health Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-86.444 * ( 1 - 0.74% )	/	( (822.495	+	812.296)	/ 2 )
=	-85.8043144	/	817.3955
=	-10.50 %

where

	Invested Capital		(Q: Jun. 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	))
=	1240.692	-	175.961	-	( 242.236	-	max(0, 363.23	-	623.163	+	242.236	))
=	822.495

	Invested Capital		(Q: 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	))
=	1258.189	-	215.711	-	( 240.749	-	max(0, 441.752	-	671.934	+	240.749	))
=	812.296

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Mytrex Health Technologies (ROCO:4431) 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, Mytrex Health Technologies's WACC % is 4.60%. Mytrex Health Technologies's ROC % is -8.74% (calculated using TTM income statement data). Mytrex Health Technologies 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.

Mytrex Health Technologies ROC % Related Terms

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Mytrex Health Technologies (ROCO:4431) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Mytrex Health Technologies Inc (ROCO:4431) » Definitions » ROC %

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Address

No. 545, Sec. 2, Hezun North Road, Zhongli District, Taoyuan, TWN, 32060

Website

http://www.mytrex.com.tw

Mytrex Health Technologies Inc is a Taiwan-based company engaged in the manufacturing of non-woven materials and special medical supplies. It is engaged in the development and production of melt-blown products for the protection of the environment and human health. The company offers products ranging from medical to industrial filtration materials such as various types of filtration media, lab coats or outfits, cabin filtration, vacuum cleaner filter bags, and special medical supplies. Its product categories include meltdown, mammoth bedding, and specialized medical supplies like balloon catheters and coronary stents.

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