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Medinex (SGX:OTX) ROC % : 24.89% (As of Sep. 2024)


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What is Medinex 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 %. Medinex's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 24.89%.

As of today (2024-12-13), Medinex's WACC % is 5.87%. Medinex's ROC % is 25.14% (calculated using TTM income statement data). Medinex 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.


Medinex ROC % Historical Data

The historical data trend for Medinex'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.

* Premium members only.

Medinex ROC % Chart

Medinex Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial 56.20 28.06 20.11 19.38 20.49

Medinex Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.33 21.30 17.83 21.86 24.89

Medinex ROC % Calculation

Medinex's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=3.795 * ( 1 - 14.67% )/( (17.157 + 14.445)/ 2 )
=3.2382735/15.801
=20.49 %

where

Medinex'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: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=3.972 * ( 1 - 11.22% )/( (14.445 + 13.895)/ 2 )
=3.5263416/14.17
=24.89 %

where

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

* 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.


Medinex  (SGX:OTX) 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, Medinex's WACC % is 5.87%. Medinex's ROC % is 25.14% (calculated using TTM income statement data). Medinex 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.


Medinex ROC % Related Terms

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Medinex Business Description

Traded in Other Exchanges
N/A
Address
111 North Bridge Road, No. 23-04, Peninsula Plaza, Singapore, SGP, 179098
Medinex Ltd is an investment holding company. The company has four business segments: Medical Support Services, Business Support Services, Pharmaceutical Services, and Medical Services. The company generates maximum revenue from the Medical Support Services segment. The Medical support services business segment provides professional services to clients in primary and secondary healthcare sectors comprising general practitioners and specialists.

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