Alliance Healthcare Group (SGX:MIJ) ROC % : 5.09% (As of Dec. 2024)

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What is Alliance Healthcare Group 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 %. Alliance Healthcare Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 5.09%.

As of today (2025-03-05), Alliance Healthcare Group's WACC % is 4.94%. Alliance Healthcare Group's ROC % is 20.46% (calculated using TTM income statement data). Alliance Healthcare Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Alliance Healthcare Group ROC % Historical Data

The historical data trend for Alliance Healthcare Group'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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Alliance Healthcare Group ROC % Chart

Alliance Healthcare Group Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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34.98

23.74

33.67

29.05

304.89

Alliance Healthcare Group Semi-Annual Data
	Jun16	Jun17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial											40.80	3.57	27.30	13.97	5.09

Alliance Healthcare Group ROC % Calculation

Alliance Healthcare Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	6.689 * ( 1 - -1362.5% )	/	( (23.018	+	41.153)	/ 2 )
=	97.826625	/	32.0855
=	304.89 %

where

	Invested Capital		(A: 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	))
=	64.948	-	27.084	-	( 19.527	-	max(0, 31.463	-	46.309	+	19.527	))
=	23.018

	Invested Capital		(A: 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	))
=	82.903	-	38.339	-	( 18.571	-	max(0, 53.991	-	57.402	+	18.571	))
=	41.153

Alliance Healthcare Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	7.882 * ( 1 - 75.91% )	/	( (41.153	+	33.482)	/ 2 )
=	1.8987738	/	37.3175
=	5.09 %

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	))
=	82.903	-	38.339	-	( 18.571	-	max(0, 53.991	-	57.402	+	18.571	))
=	41.153

	Invested Capital		(Q: Dec. 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	))
=	83.723	-	40.375	-	( 18.135	-	max(0, 48.593	-	58.459	+	18.135	))
=	33.482

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

Alliance Healthcare Group (SGX:MIJ) 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, Alliance Healthcare Group's WACC % is 4.94%. Alliance Healthcare Group's ROC % is 20.46% (calculated using TTM income statement data). Alliance Healthcare Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Alliance Healthcare Group ROC % Related Terms

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Alliance Healthcare Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Alliance Healthcare Group Ltd (SGX:MIJ) » Definitions » ROC %

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Address

25 Bukit Batok Crescent, No.07-12 The Elitist, Singapore, SGP, 658066

Website

https://www.alliancehealthcare.com.sg

Alliance Healthcare Group Ltd is an investment holding company. The segments of the company involve General Practitioner ("GP") clinic services, Specialist care services, Pharmaceutical services, Managed healthcare solutions; and Mobile and digital health services. It generates maximum revenue from the GP clinic services segment. The GP clinic services segment is in the business of the provision of primary healthcare medical services by general practitioners. Geographically, it derives a majority of revenue from Singapore and also has a presence in Europe and the Asia Pacific Region.

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