CarePayment Technologies (CarePayment Technologies) ROIC % : -41.93% (As of Dec. 2012)

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What is CarePayment Technologies ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CarePayment Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2012 was -41.93%.

As of today (2024-05-04), CarePayment Technologies's WACC % is 0.00%. CarePayment Technologies's ROIC % is 0.00% (calculated using TTM income statement data). CarePayment Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CarePayment Technologies ROIC % Historical Data

The historical data trend for CarePayment Technologies's ROIC % 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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CarePayment Technologies ROIC % Chart

CarePayment Technologies Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROIC %

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-850.68

-7.30

-30.06

-36.45

-28.70

CarePayment Technologies Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
ROIC %	Get a 7-Day Free Trial															-48.39	-28.53	-47.57	-49.15	-41.93

Competitive Comparison of CarePayment Technologies's ROIC %

For the Healthcare Plans subindustry, CarePayment Technologies's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CarePayment Technologies's ROIC % Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, CarePayment Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where CarePayment Technologies's ROIC % falls into.

CarePayment Technologies ROIC % Calculation

CarePayment Technologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROIC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	-4.668 * ( 1 - -0.23% )	/	( (13.532	+	19.078)	/ 2 )
=	-4.6787364	/	16.305
=	-28.70 %

where

	Invested Capital		(A: Dec. 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	))
=	10.395	-	1.587	-	( 0.203	-	max(0, 5.307	-	0.583	+	0.203	))
=	13.532

	Invested Capital		(A: Dec. 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	))
=	10.237	-	1.448	-	( 0.263	-	max(0, 11.018	-	0.729	+	0.263	))
=	19.078

CarePayment Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2012 is calculated as:

	ROIC % (Q: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2012 )	+	Invested Capital (Q: Dec. 2012 ))	/ count )
=	-6.012 * ( 1 - 0.03% )	/	( (9.591	+	19.078)	/ 2 )
=	-6.0101964	/	14.3345
=	-41.93 %

where

	Invested Capital		(Q: Sep. 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	))
=	10.062	-	1.665	-	( 0.285	-	max(0, 1.714	-	0.52	+	0.285	))
=	9.591

	Invested Capital		(Q: Dec. 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	))
=	10.237	-	1.448	-	( 0.263	-	max(0, 11.018	-	0.729	+	0.263	))
=	19.078

Note: The Operating Income data used here is four times the quarterly (Dec. 2012) data.

CarePayment Technologies (OTCPK:CPYT) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, CarePayment Technologies's WACC % is 0.00%. CarePayment Technologies's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

CarePayment Technologies ROIC % Related Terms

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CarePayment Technologies (CarePayment Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » CarePayment Technologies Inc (OTCPK:CPYT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5300 Meadows Road, Suite 400, Lake Oswego, OR, USA, 97035

Website

http://www.carepayment.com

CarePayment Technologies Inc is a healthcare finance company. It helps people manage their medical expenses. CarePayment provides patient finance solutions to hospitals, physician practices, and ancillary service providers nationwide. The company offer patients finance options that help people get the care needed, and whenever needed.

Executives

Paulson Capital Corp	other: See Footnote (1)	222 THIRD STREET, SUITE 2241, CAMBRIDGE MA 02142
Jacqueline M Paulson	other: See Footnote (1)	811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204
Paulson Chester L F	other: See Footnote (1)	811 SW NAITO PARKWAY, SUITE 200, PORTLAND OR 97204

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