Ontrak (STU:HY11) ROC % : -117.72% (As of Sep. 2024)

View and export this data going back to 2020. Start your Free Trial

What is Ontrak 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 %. Ontrak's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -117.72%.

As of today (2024-12-15), Ontrak's WACC % is 27.13%. Ontrak's ROC % is -132.18% (calculated using TTM income statement data). Ontrak earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ontrak ROC % Historical Data

The historical data trend for Ontrak'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.

Ontrak ROC % Chart

Ontrak Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-197.10

-46.22

-53.06

-212.95

-182.82

Ontrak 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															-172.66	-244.67	-122.60	-96.27	-117.72

Ontrak ROC % Calculation

Ontrak'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 )
=	-18.959 * ( 1 - 0.28% )	/	( (13.655	+	7.027)	/ 2 )
=	-18.9059148	/	10.341
=	-182.82 %

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	))
=	24.315	-	6.139	-	( 4.75	-	max(0, 8.939	-	13.46	+	4.75	))
=	13.655

	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	))
=	18.199	-	3.069	-	( 8.896	-	max(0, 3.615	-	11.718	+	8.896	))
=	7.027

Ontrak'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 )
=	-18.404 * ( 1 - 0% )	/	( (14.364	+	16.903)	/ 2 )
=	-18.404	/	15.6335
=	-117.72 %

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	))
=	23.48	-	2.342	-	( 6.774	-	max(0, 2.839	-	10.33	+	6.774	))
=	14.364

	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	))
=	20.181	-	1.917	-	( 7.177	-	max(0, 7.8	-	9.161	+	7.177	))
=	16.903

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Ontrak (STU:HY11) 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, Ontrak's WACC % is 27.13%. Ontrak's ROC % is -132.18% (calculated using TTM income statement data). Ontrak 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.

Ontrak ROC % Related Terms

Thank you for viewing the detailed overview of Ontrak's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Ontrak Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Ontrak Inc (STU:HY11) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

OTRKP.PFD:USA OTRK:USA

Address

333 S. E. 2nd Avenue, Suite 2000, Miami, FL, USA, 33131

Website

https://www.ontrakhealth.com

Ontrak Inc is an artificial intelligence (AI)-powered and technology-enabled behavioral healthcare company, whose mission is to help improve the health and save the lives of as many people as possible. The Company's technology-enabled platform utilizes claim-based analytics and predictive modeling to provide analytic insights throughout the delivery of our personalized care program. The company's integrated, technology-enabled OntrakTM solutions, a component of the PRE platform, are designed to treat members with behavioral conditions that cause chronic medical conditions such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure.

Ontrak Headlines

No Headlines