United American Healthcare (United American Healthcare) ROC % : -2.32% (As of Sep. 2014)

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What is United American Healthcare 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 %. United American Healthcare's annualized return on capital (ROC %) for the quarter that ended in Sep. 2014 was -2.32%.

As of today (2024-06-21), United American Healthcare's WACC % is 0.00%. United American Healthcare's ROC % is 0.00% (calculated using TTM income statement data). United American Healthcare earns returns that do not match up to its cost of capital. It will destroy value as it grows.

United American Healthcare ROC % Historical Data

The historical data trend for United American Healthcare'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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United American Healthcare ROC % Chart

United American Healthcare Annual Data

Trend

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

ROC %

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2.77

-113.41

-37.81

-7.24

0.60

United American Healthcare Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROC %	Get a 7-Day Free Trial															-3.96	-5.38	-5.62	0.71	-2.32

United American Healthcare ROC % Calculation

United American Healthcare's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2012 is calculated as:

	ROC % (A: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2011 )	+	Invested Capital (A: Jun. 2012 ))	/ count )
=	0.139 * ( 1 - -1.64% )	/	( (22.315	+	24.835)	/ 2 )
=	0.1412796	/	23.575
=	0.60 %

where

	Invested Capital		(A: Jun. 2011 )
=	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	))
=	16.916	-	0.952	-	( 1.532	-	max(0, 9.11	-	2.759	+	1.532	))
=	22.315

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	15.566	-	0.89	-	( 0.215	-	max(0, 11.603	-	1.444	+	0.215	))
=	24.835

United American Healthcare's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2014 is calculated as:

	ROC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	-0.552 * ( 1 - 0% )	/	( (23.079	+	24.534)	/ 2 )
=	-0.552	/	23.8065
=	-2.32 %

where

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	15.129	-	1.25	-	( 0.128	-	max(0, 11.114	-	1.914	+	0.128	))
=	23.079

	Invested Capital		(Q: Sep. 2014 )
=	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	))
=	14.812	-	1.069	-	( 0.194	-	max(0, 12.579	-	1.788	+	0.194	))
=	24.534

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) data.

United American Healthcare (OTCPK:UAHC) 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, United American Healthcare's WACC % is 0.00%. United American Healthcare's ROC % is 0.00% (calculated using TTM income statement data). United American Healthcare 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.

United American Healthcare ROC % Related Terms

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United American Healthcare (United American Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » United American Healthcare Corp (OTCPK:UAHC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

303 East Wacker Drive, Suite 1040, Chicago, IL, USA, 60601

Website

https://www.uahc.com

United American Healthcare Corporation provides contract manufacturing services to the medical device industry, through its subsidiary, in the United States. The firm derives maximum revenue from the Contract manufacturing services segment which involves the provision of Pulse Systems to the medical device industry.

Executives

Herbert J Bellucci	director, officer: President&CEO of Pulse Systems	13950 STOWE DRIVE, POWAY CA 92064
Bruce Galloway	director	C/O GALLOWAY CAPITAL MANAGEMENT LLC, 720 FIFTH AVENUE 10TH FLOOR, NEW YORK NY 10019
Miller Lloyd I Iii	other: Former 10% owner
Eddie R Munson	director	5879 MURFIELD DRIVE, ROCHESTER HILLS MI 48306