DSOL (Drug Free Solution) ROIC %: -202.96% (As of Feb. 2014)


What is Drug Free Solution ROIC %?

Drug Free Solution DSOL ROIC % is -202.96% as of Feb. 2014.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Drug Free Solution's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2014 was -202.96%.

As of today (2026-06-26), Drug Free Solution's WACC % is 0.00%. Drug Free Solution's ROIC % is 0.00% (calculated using TTM income statement data). Drug Free Solution earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Drug Free Solution  (OTCPK:DSOL) 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, Drug Free Solution's WACC % is 0.00%. Drug Free Solution's ROIC % is 0.00% (calculated using TTM income statement data). Drug Free Solution 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 %, 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.

Drug Free Solution ROIC % Related Terms

Drug Free Solution ROIC % Historical Data

* Premium members only.

The historical data trend for Drug Free Solution'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.

Drug Free Solution ROIC % Chart

Drug Free Solution Annual Data
Trend May12 May13
ROIC %
-10,960.00 -16,800.00

Drug Free Solution Quarterly Data
Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -6,571.43 -41,600.00 -888.89 -444.44 -202.96

DSOL vs USEL, ZZLL, WSCO: ROIC % Comparison

For the Health Information Services subindustry, Drug Free Solution'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.

Drug Free Solution ROIC % vs Healthcare Providers & Services Industry

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

* The bar in red indicates where Drug Free Solution's ROIC % falls into.


Drug Free Solution ROIC % Calculation

Drug Free Solution's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2013 is calculated as:

ROIC % (A: May. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2012 ) + Invested Capital (A: May. 2013 ))/ count )
=-0.756 * ( 1 - 0% )/( (0.005 + 0.004)/ 2 )
=-0.756/0.0045
=-16,800.00 %

where

Invested Capital(A: May. 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))
=0.02 - 0 - ( 0.015 - max(0, 0 - 0.015+0.015))
=0.005

Invested Capital(A: May. 2013 )
=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))
=0.012 - 0.063 - ( 0.008 - max(0, 0.063 - 0.008+0.008))
=0.004

Drug Free Solution's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2014 is calculated as:

ROIC % (Q: Feb. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2013 ) + Invested Capital (Q: Feb. 2014 ))/ count )
=-0.48 * ( 1 - 0% )/( (0.184 + 0.289)/ 2 )
=-0.48/0.2365
=-202.96 %

where

Invested Capital(Q: Nov. 2013 )
=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))
=0.05 - 0.133 - ( 0.001 - max(0, 0.268 - 0.001+0.001))
=0.184

Invested Capital(Q: Feb. 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))
=0.052 - 0.147 - ( 0.007 - max(0, 0.391 - 0.007+0.007))
=0.289

Note: The Operating Income data used here is four times the quarterly (Feb. 2014) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of -202.96% mean?
Drug Free Solution (DSOL) has a ROIC % of -202.96% as of Feb. 2014. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Drug Free Solution and its competitors.
Is Drug Free Solution's ROIC % too high?
Drug Free Solution's current ROIC % is -202.96%.
How does Drug Free Solution's ROIC % compare to USEL and ZZLL?
Drug Free Solution's ROIC % of -202.96% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 671 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Drug Free Solution and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drug Free Solution's current ROIC % is -202.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drug Free Solution stock overvalued right now?
Drug Free Solution (DSOL) has a current ROIC % of -202.96%. The current ROIC % is -202.96%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Drug Free Solution (DSOL), the current ROIC % is -202.96% as of Feb. 2014. 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.

Drug Free Solution Business Description

Address 2211 Michelson Drive, Irvine, CA, USA, 92612
Drug Free Solution Inc is a United States based holding company that owns and operates various subsidiaries in the healthcare industry. It is focused on acquiring healthcare operations that focus on Home Healthcare, Developmental Disabilities, Hospice Care, Skilled Nursing, Residential Rehabilitation, Home & Community Based Services.