Medtecs International (TPE:9103) ROC % : -7.84% (As of Jun. 2024)

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What is Medtecs International 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 %. Medtecs International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -7.84%.

As of today (2024-09-25), Medtecs International's WACC % is 14.29%. Medtecs International's ROC % is -17.58% (calculated using TTM income statement data). Medtecs International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Medtecs International ROC % Historical Data

The historical data trend for Medtecs International'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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Medtecs International ROC % Chart

Medtecs International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.37

101.81

10.92

-21.23

-16.76

Medtecs International Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-5.21	-35.51	-8.18	-26.81	-7.84

Medtecs International ROC % Calculation

Medtecs International'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 )
=	-767.568 * ( 1 - 0.12% )	/	( (4813.561	+	4335.208)	/ 2 )
=	-766.6469184	/	4574.3845
=	-16.76 %

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	))
=	5580.239	-	211.195	-	( 555.483	-	max(0, 768.762	-	3383.688	+	555.483	))
=	4813.561

	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	))
=	5211.719	-	179.446	-	( 697.065	-	max(0, 1030.299	-	2993.737	+	697.065	))
=	4335.208

Medtecs International'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 )
=	-331.798 * ( 1 - 2.52% )	/	( (4335.208	+	3918.305)	/ 2 )
=	-323.4366904	/	4126.7565
=	-7.84 %

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	))
=	5211.719	-	179.446	-	( 697.065	-	max(0, 1030.299	-	2993.737	+	697.065	))
=	4335.208

	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	))
=	5216.906	-	258.302	-	( 1040.299	-	max(0, 1062.412	-	3127.955	+	1040.299	))
=	3918.305

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

Medtecs International (TPE:9103) 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, Medtecs International's WACC % is 14.29%. Medtecs International's ROC % is -17.58% (calculated using TTM income statement data). Medtecs International 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.

Medtecs International ROC % Related Terms

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Medtecs International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Medtecs International Corp Ltd (TPE:9103) » Definitions » ROC %

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546:Singapore

Address

No. 330 Sen. Gil J. Puyat Avenue, 22nd Floor, The World Centre, Makati, PHL, 1227

Website

https://www.medtecs.com

Medtecs International Corp Ltd is an investment holding company. The company along with its subsidiaries is a manufacturer of medical consumables and provides healthcare products and services. It operates in three segments The Manufacturing segment produces and sub-contracts medical consumables, including patients apparels, disposable surgical masks, boot covers and surgical gowns, adult diapers, underpads, crochet blankets, bed linens and medical bandages. The Hospital services segment provides laundry and leasing services. The Distribution segment is involved in the marketing of Medtecs-branded medical consumables to hospitals, pharmacies, and other end users. It generates the highest revenue from the Manufacturing segment.

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