HCmed Innovations Co (ROCO:6934) ROC % : -158.33% (As of Jun. 2024)

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What is HCmed Innovations Co 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 %. HCmed Innovations Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -158.33%.

As of today (2024-12-16), HCmed Innovations Co's WACC % is 10.35%. HCmed Innovations Co's ROC % is -160.43% (calculated using TTM income statement data). HCmed Innovations Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

HCmed Innovations Co ROC % Historical Data

The historical data trend for HCmed Innovations Co'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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HCmed Innovations Co ROC % Chart

HCmed Innovations Co Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

-118.81

-259.15

-167.17

HCmed Innovations Co Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-267.46	-255.48	-139.90	-162.08	-158.33

HCmed Innovations Co ROC % Calculation

HCmed Innovations Co'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 )
=	-143.752 * ( 1 - 0.28% )	/	( (78.099	+	93.407)	/ 2 )
=	-143.3494944	/	85.753
=	-167.17 %

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	))
=	206.623	-	16.749	-	( 123.497	-	max(0, 20.252	-	132.027	+	123.497	))
=	78.099

	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	))
=	326.084	-	18.722	-	( 243.614	-	max(0, 40.583	-	254.538	+	243.614	))
=	93.407

HCmed Innovations Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-139.75 * ( 1 - 0.34% )	/	( (93.407	+	82.524)	/ 2 )
=	-139.27485	/	87.9655
=	-158.33 %

where

	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	))
=	326.084	-	18.722	-	( 243.614	-	max(0, 40.583	-	254.538	+	243.614	))
=	93.407

	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	))
=	252.158	-	16.662	-	( 170.478	-	max(0, 32.406	-	185.378	+	170.478	))
=	82.524

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

HCmed Innovations Co (ROCO:6934) 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, HCmed Innovations Co's WACC % is 10.35%. HCmed Innovations Co's ROC % is -160.43% (calculated using TTM income statement data). HCmed Innovations Co 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.

HCmed Innovations Co ROC % Related Terms

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HCmed Innovations Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » HCmed Innovations Co Ltd (ROCO:6934) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Dunhua S. Road, Rm.B, 10th floor., No.319, Sec.2, Taipei, TWN, 106033

Website

https://www.hcmed-inno.com

HCmed Innovations Co Ltd is focused on inhalation therapy to create integrated drug nebulizer combination products featuring nebulization therapeutic drugs that include small molecule synthetics and large molecule biologics, as either solutions, suspensions, and even difficult-to-deliver high viscosity drugs. Its product include Pulmogine and AdheResp.

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