CloudMD Software & Services (CloudMD Software & Services) ROIC % : -18.31% (As of Dec. 2023)

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What is CloudMD Software & Services 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 %. CloudMD Software & Services's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -18.31%.

As of today (2024-05-26), CloudMD Software & Services's WACC % is 9.23%. CloudMD Software & Services's ROIC % is -13.56% (calculated using TTM income statement data). CloudMD Software & Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CloudMD Software & Services ROIC % Historical Data

The historical data trend for CloudMD Software & Services'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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CloudMD Software & Services ROIC % Chart

CloudMD Software & Services Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-38.66

-22.84

-8.08

-11.59

-14.87

CloudMD Software & Services Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-11.58	-12.98	-13.27	-11.08	-18.31

Competitive Comparison of CloudMD Software & Services's ROIC %

For the Health Information Services subindustry, CloudMD Software & Services'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.

CloudMD Software & Services's ROIC % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, CloudMD Software & Services's ROIC % distribution charts can be found below:

* The bar in red indicates where CloudMD Software & Services's ROIC % falls into.

CloudMD Software & Services ROIC % Calculation

CloudMD Software & Services's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-14.096 * ( 1 - 6.5% )	/	( (123.215	+	54.098)	/ 2 )
=	-13.17976	/	88.6565
=	-14.87 %

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	))
=	137.239	-	15.393	-	( 17.709	-	max(0, 39.818	-	38.449	+	17.709	))
=	123.215

	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	))
=	62.544	-	13.343	-	( 6.656	-	max(0, 29.251	-	24.354	+	6.656	))
=	54.098

CloudMD Software & Services's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-15.412 * ( 1 - 7.41% )	/	( (101.746	+	54.098)	/ 2 )
=	-14.2699708	/	77.922
=	-18.31 %

where

	Invested Capital		(Q: Sep. 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	))
=	114.464	-	13.893	-	( 9.82	-	max(0, 31.502	-	30.327	+	9.82	))
=	101.746

	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	))
=	62.544	-	13.343	-	( 6.656	-	max(0, 29.251	-	24.354	+	6.656	))
=	54.098

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

CloudMD Software & Services (OTCPK:DOCRF) 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, CloudMD Software & Services's WACC % is 9.23%. CloudMD Software & Services's ROIC % is -13.56% (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.

CloudMD Software & Services ROIC % Related Terms

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CloudMD Software & Services (CloudMD Software & Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » CloudMD Software & Services Inc (OTCPK:DOCRF) » Definitions » ROIC %

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6PH:Germany DOC:Canada

Address

885 West Georgia Street, 2200 HSBC Building, Vancouver, BC, CAN, V6C 3E8

Website

https://www.cloudmd.ca

CloudMD Software & Services Inc is digitizing the delivery of healthcare by providing patients access to all points of their care from their phone, tablet or desktop computer. The company offers SAAS-based health technology solutions to medical clinics across Canada and has developed proprietary technology that delivers quality healthcare through the combination of connected primary care clinics, telemedicine, and artificial intelligence (AI). It has two segments Digital Health Solutions and Enterprise Health Solutions.