HSDT (Helius Medical Technologies) ROIC % : -1,440.71% (As of Sep. 2024)

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What is Helius Medical 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 %. Helius Medical Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -1,440.71%.

As of today (2025-03-14), Helius Medical Technologies's WACC % is 10.14%. Helius Medical Technologies's ROIC % is -1065.91% (calculated using TTM income statement data). Helius Medical Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Helius Medical Technologies ROIC % Historical Data

The historical data trend for Helius Medical 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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Helius Medical Technologies ROIC % Chart

Helius Medical Technologies Annual Data

Trend

Mar14

Mar15

Mar16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-232.73

-353.25

-625.16

-719.60

-904.46

Helius Medical Technologies Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															-828.79	-618.31	-1,216.74	-1,387.80	-1,440.71

Competitive Comparison of Helius Medical Technologies's ROIC %

For the Medical Devices subindustry, Helius Medical 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.

Helius Medical Technologies's ROIC % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Helius Medical Technologies's ROIC % distribution charts can be found below:

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

Helius Medical Technologies ROIC % Calculation

Helius Medical Technologies'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 )
=	-12.269 * ( 1 - 0% )	/	( (1.4	+	1.313)	/ 2 )
=	-12.269	/	1.3565
=	-904.46 %

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	))
=	17.287	-	1.338	-	( 14.549	-	max(0, 1.988	-	16.697	+	14.549	))
=	1.4

	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	))
=	7.692	-	1.197	-	( 5.182	-	max(0, 1.879	-	7.438	+	5.182	))
=	1.313

Helius Medical Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-16.28 * ( 1 - 0% )	/	( (0.952	+	1.308)	/ 2 )
=	-16.28	/	1.13
=	-1,440.71 %

where

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	8.846	-	1.507	-	( 6.387	-	max(0, 2.057	-	8.641	+	6.387	))
=	0.952

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	5.585	-	0.809	-	( 3.468	-	max(0, 1.496	-	5.406	+	3.468	))
=	1.308

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Helius Medical Technologies (NAS:HSDT) 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, Helius Medical Technologies's WACC % is 10.14%. Helius Medical Technologies's ROIC % is -1065.91% (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.

Helius Medical Technologies ROIC % Related Terms

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Helius Medical Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Helius Medical Technologies Inc (NAS:HSDT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

642 Newtown Yardley Road, Suite 100, Newtown, PA, USA, 18940

Website

https://www.heliusmedical.com

Helius Medical Technologies Inc is a neurotech company focused on neurological wellness. The company's purpose is to develop, license, or acquire non-invasive technologies targeted at reducing symptoms of neurological disease or trauma. The company's product, known as the Portable Neuromodulation Stimulator (PoNS), is authorized for sale in Canada as a class II, a non-implantable medical device intended for use as a short-term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury and is to be used in conjunction with supervised therapeutic exercise.

Executives

Dane Andreeff	director, 10 percent owner, officer: President and CEO	C/O ANDREEFF EQUITY ADVISORS L.L.C., 140 E. ST. LUCIA LANE, SANTA ROSA BEACH FL 32459
Jeffrey S Mathiesen	director, officer: CFO and Treasurer	43334 SEVEN MILE RD., SUITE 1000, NORTHVILLE MI 48167
Favit-van Pelt Antonella R.	officer: Chief Medical Officer	C/O HELIUS MEDICAL TECHNOLOGIES, INC., 642 NEWTOWN YARDLEY ROAD, NEWTOWN PA 18940
Paul Buckman	director	12988 VALLEY VIEW RD, EDEN PRAIRIE MN 55402
Sherrie L Perkins	director	5033 TANGLE LANE, HOUSTON TX 77056
Jennifer Laux	officer: Chief Commercial Officer	642 NEWTOWN YARDLEY ROAD, SUITE 100, NEWTOWN PA 18940
Thomas E Griffin	director	C/O ENTELLUS MEDICAL, INC., 3600 HOLLY LANE NORTH, SUITE 40, PLYMOUTH MN 55447
Blane Walter	director	500 OLDE WORTHINGTON ROAD, WESTERVILLE OH 43082
Edward M Straw	director	C/O ESTEE LAUDER COMPANIES, 767 FIFTH AVENUE, NEW YORK NY 10153
Joyce N Laviscount	officer: See Remarks	100 ENDO BOULEVARD, CHADDS FORD PA 19317
Huaizheng Peng	director	HELIUS MEDICAL TECHNOLOGIES, INC., SUITE 400, 41 UNIVERSITY DRIVE, NEWTOWN PA 18940
Philippe Deschamps	director, 10 percent owner, officer: President & CEO	105 BRADFORD RD, SUITE 420, WEXFORD PA 15090
Mitch E Tyler	director	HELIUS MEDICAL TECHNOLOGIES, INC., SUITE 400, 41 UNIVERSITY DRIVE, NEWTOWN PA 18940
Jonathan Sackier	10 percent owner, officer: Chief Medical Officer	HELIUS MEDICAL TECHNOLOGIES, INC., SUITE 400, 41 UNIVERSITY DRIVE, NEWTOWN PA 18940
A&b (hk) Co Ltd	10 percent owner	8/F BLDG A TONGFANG INFORMATION HARBOR, NO 11 LANGSHAN ROAD NANSHAN DISTRICT, SHENZHEN F4 518057