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Humanwell Healthcare (Group) Co (SHSE:600079) ROC % : 11.54% (As of Sep. 2024)


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What is Humanwell Healthcare (Group) 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 %. Humanwell Healthcare (Group) Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 11.54%.

As of today (2025-03-15), Humanwell Healthcare (Group) Co's WACC % is 6.50%. Humanwell Healthcare (Group) Co's ROC % is 11.66% (calculated using TTM income statement data). Humanwell Healthcare (Group) Co 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.


Humanwell Healthcare (Group) Co ROC % Historical Data

The historical data trend for Humanwell Healthcare (Group) 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.

* Premium members only.

Humanwell Healthcare (Group) Co ROC % Chart

Humanwell Healthcare (Group) Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.18 8.92 8.58 9.75 11.59

Humanwell Healthcare (Group) Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.42 10.69 10.95 13.33 11.54

Humanwell Healthcare (Group) Co ROC % Calculation

Humanwell Healthcare (Group) 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 )
=3617.903 * ( 1 - 16.8% )/( (25917.015 + 26021.419)/ 2 )
=3010.095296/25969.217
=11.59 %

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))
=36023.022 - 5820.841 - ( 6121.949 - max(0, 15142.744 - 19427.91+6121.949))
=25917.015

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))
=36204.298 - 5142.041 - ( 5040.838 - max(0, 13225.866 - 19635.031+5040.838))
=26021.419

Humanwell Healthcare (Group) Co'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: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=3916.756 * ( 1 - 19.88% )/( (27003.242 + 27366.001)/ 2 )
=3138.1049072/27184.6215
=11.54 %

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))
=36580.817 - 5095.842 - ( 4481.733 - max(0, 13389.313 - 20071.471+4481.733))
=27003.242

Invested Capital(Q: Sep. 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))
=37345.934 - 5217.129 - ( 4762.804 - max(0, 13726.921 - 20487.119+4762.804))
=27366.001

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


Humanwell Healthcare (Group) Co  (SHSE:600079) 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, Humanwell Healthcare (Group) Co's WACC % is 6.50%. Humanwell Healthcare (Group) Co's ROC % is 11.66% (calculated using TTM income statement data). Humanwell Healthcare (Group) Co 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.


Humanwell Healthcare (Group) Co ROC % Related Terms

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Humanwell Healthcare (Group) Co Business Description

Traded in Other Exchanges
N/A
Address
No.666 Gaoxin Road, East Lake High-tech Development Zone, Hubei, Hubei Province, Wuhan, CHN, 430075
Humanwell Healthcare (Group) Co Ltd is a China-based integrated healthcare solution provider. Being a pharmaceutical company, it provides medicinal products including fertility-regulating drugs, Uygur medicine, traditional Chinese medicine, medical devices, over-the-counter medicines, anti-infection drugs, herbal medicines, and biological products. The organization has a business presence in China and other international countries.
Executives
Wang Xue Hai Director
Li Jie Director
Xu Hua Bin senior management
Du Wen Tao senior management
Wu Ya Jun senior management
Deng Xia Fei Directors, senior managers
Li Li E senior management
Yu Qun senior management
Zhang Hong Jie senior management
Yin Qiang senior management
Li Qian Lun senior management
Gai Song Mei Supervisors
Zhang Xiao Dong Director
Liu Yi senior management
Ai Lu Ming Director

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