Reliq Health Technologies (TSXV:RHT) ROC % : -39.31% (As of Sep. 2022)

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What is Reliq Health Technologies 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 %. Reliq Health Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was -39.31%.

As of today (2024-04-30), Reliq Health Technologies's WACC % is 0.00%. Reliq Health Technologies's ROC % is 0.00% (calculated using TTM income statement data). Reliq Health Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Reliq Health Technologies ROC % Historical Data

The historical data trend for Reliq Health Technologies'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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Reliq Health Technologies ROC % Chart

Reliq Health Technologies Annual Data

Trend

Dec13

Dec14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

ROC %

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-1,271.66

-600.68

-577.95

-966.60

-220.58

Reliq Health Technologies Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %	Get a 7-Day Free Trial															-780.30	-182.33	-52.22	-78.02	-39.31

Reliq Health Technologies ROC % Calculation

Reliq Health Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	-8.296 * ( 1 - 0% )	/	( (1.079	+	6.443)	/ 2 )
=	-8.296	/	3.761
=	-220.58 %

where

	Invested Capital		(A: Jun. 2021 )
=	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	))
=	3.462	-	2.057	-	( 0.326	-	max(0, 2.238	-	3.178	+	0.326	))
=	1.079

	Invested Capital		(A: Jun. 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	))
=	10.267	-	3.591	-	( 0.233	-	max(0, 3.712	-	6.969	+	0.233	))
=	6.443

Reliq Health Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-2.912 * ( 1 - 0% )	/	( (6.443	+	8.371)	/ 2 )
=	-2.912	/	7.407
=	-39.31 %

where

	Invested Capital		(Q: Jun. 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	))
=	10.267	-	3.591	-	( 0.233	-	max(0, 3.712	-	6.969	+	0.233	))
=	6.443

	Invested Capital		(Q: Sep. 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	))
=	14.247	-	5.701	-	( 0.175	-	max(0, 5.845	-	10.055	+	0.175	))
=	8.371

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Reliq Health Technologies (TSXV:RHT) 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, Reliq Health Technologies's WACC % is 0.00%. Reliq Health Technologies's ROC % is 0.00% (calculated using TTM income statement data). Reliq Health Technologies 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.

Reliq Health Technologies ROC % Related Terms

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Reliq Health Technologies (TSXV:RHT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Reliq Health Technologies Inc (TSXV:RHT) » Definitions » ROC %

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Address

175 Longwood Rd S., Suite 406A, Hamilton, ON, CAN, L8P 0A1

Website

https://www.reliqhealth.com

Reliq Health Technologies Inc specializes in developing Software-as-a-Service (SaaS) solutions for remote patient monitoring, telemedicine, and care collaboration. Reliq's IUGO health technology platform is a hardware and software solution that allows complex patients to receive high-quality care in the home, improving health outcomes, enhancing the quality of life for patients and families and reducing the cost of care delivery. The firm earns through the supply of mobile device management (MDM) solutions for mobile devices and subscriptions of the iUGO CARE platform to healthcare client. The firm is based in Canada.

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