HMGN (Hemagen Diagnostics) ROCE %: -31.05% (As of Sep. 2012)

What is Hemagen Diagnostics ROCE %?

Hemagen Diagnostics HMGN +766.67% ROCE % is -31.05% as of Sep. 2012.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Hemagen Diagnostics's annualized ROCE % for the quarter that ended in Sep. 2012 was -31.05%.

Hemagen Diagnostics (OTCPK:HMGN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Hemagen Diagnostics ROCE % Related Terms

Hemagen Diagnostics ROCE % Historical Data

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The historical data trend for Hemagen Diagnostics's ROCE % 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.

Hemagen Diagnostics ROCE % Chart

Hemagen Diagnostics Annual Data

Trend

Sep03

Sep04

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

ROCE %

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16.24

-54.02

11.90

-26.37

-47.22

Hemagen Diagnostics Quarterly Data
	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12
ROCE %	Get a 7-Day Free Trial															-43.40	-86.04	-56.86	-6.76	-31.05

Hemagen Diagnostics ROCE % Calculation

Hemagen Diagnostics's annualized ROCE % for the fiscal year that ended in Sep. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2012 )		(A: Sep. 2011 )		(A: Sep. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2012 )		(A: Sep. 2011 )		(A: Sep. 2012 )
	=	-0.438	/	( ( (2.888 - 1.526)	+	(2.443 - 1.95) )	/ 2 )
	=	-0.438	/	( (1.362	+	0.493)	/ 2 )
	=	-0.438	/	0.9275
	=	-47.22 %

Hemagen Diagnostics's ROCE % of for the quarter that ended in Sep. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2012 )		(Q: Jun. 2012 )		(Q: Sep. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2012 )		(Q: Jun. 2012 )		(Q: Sep. 2012 )
	=	-0.172	/	( ( (2.521 - 1.906)	+	(2.443 - 1.95) )	/ 2 )
	=	-0.172	/	( ( 0.615	+	0.493 )	/ 2 )
	=	-0.172	/	0.554
	=	-31.05 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2012) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -31.05% mean?

Hemagen Diagnostics (HMGN) has a ROCE % of -31.05% as of Sep. 2012.

Is Hemagen Diagnostics' ROCE % too high?

Hemagen Diagnostics' current ROCE % is -31.05%.

How does Hemagen Diagnostics' ROCE % compare to OBMP and NSPX?

Hemagen Diagnostics' ROCE % of -31.05% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Biotechnology company?

A good ROCE % depends on the Biotechnology industry context. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. Hemagen Diagnostics's current ROCE % is -31.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Hemagen Diagnostics stock overvalued right now?

Hemagen Diagnostics (HMGN) has a current ROCE % of -31.05%. The current ROCE % is -31.05%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Hemagen Diagnostics (HMGN), the current ROCE % is -31.05% as of Sep. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Hemagen Diagnostics Business Description

Industry Healthcare Biotechnology

Comparable Companies OBMP BOM:506365 NSPX BOM:532041 ATRX PPCB WAR:PFM RSPI TSXV:MFS BOM:542765 HSTC CAPS ATMS AKAOQ BRTX TSXV:PBS BOM:532871 APOP TSXV:APC ONTX

Address 9033 Red Branch Road, Columbia, MD, USA, 21045

Website http://www.hemagen.com

Hemagen Diagnostics Inc is a biotechnology company. It develops, manufactures and markets Food and Drug Administration cleared proprietary medical diagnostic test kits and components. The company's Virgo line of Immunoassays are used to aid in the diagnosis of autoimmune and infectious diseases and acute-phase proteins. The assays utilize multiple technologies including ELISA, immunofluorescence (IFA) and hemagglutination (HA). Its products include ANA Screen ELISA 96 Test System, Rubella IgG ELISA 96 Test System, AMA IFA 48 Test System and others.