PPJ Healthcare Enterprises (PPJ Healthcare Enterprises) ROIC % : 1.86% (As of Dec. 2009)

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What is PPJ Healthcare Enterprises 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 %. PPJ Healthcare Enterprises's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2009 was 1.86%.

As of today (2024-05-19), PPJ Healthcare Enterprises's WACC % is 0.00%. PPJ Healthcare Enterprises's ROIC % is 0.00% (calculated using TTM income statement data). PPJ Healthcare Enterprises earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PPJ Healthcare Enterprises ROIC % Historical Data

The historical data trend for PPJ Healthcare Enterprises'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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PPJ Healthcare Enterprises ROIC % Chart

PPJ Healthcare Enterprises Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

ROIC %

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-74.11

1.86

PPJ Healthcare Enterprises Semi-Annual Data
	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09
ROIC %	Get a 7-Day Free Trial			-74.11	-	-	-	1.86

Competitive Comparison of PPJ Healthcare Enterprises's ROIC %

For the Health Information Services subindustry, PPJ Healthcare Enterprises'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.

PPJ Healthcare Enterprises's ROIC % Distribution in the Healthcare Providers & Services Industry

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

* The bar in red indicates where PPJ Healthcare Enterprises's ROIC % falls into.

PPJ Healthcare Enterprises ROIC % Calculation

PPJ Healthcare Enterprises's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2009 is calculated as:

	ROIC % (A: Dec. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2008 )	+	Invested Capital (A: Dec. 2009 ))	/ count )
=	0.124 * ( 1 - 0% )	/	( (6.632	+	6.73)	/ 2 )
=	0.124	/	6.681
=	1.86 %

where

	Invested Capital		(A: Dec. 2008 )
=	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	))
=	4.754	-	1.087	-	( 0	-	max(0, 3.18	-	0.215	+	0	))
=	6.632

	Invested Capital		(A: Dec. 2009 )
=	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	))
=	5.443	-	1.122	-	( 0	-	max(0, 2.848	-	0.439	+	0	))
=	6.73

PPJ Healthcare Enterprises's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2009 is calculated as:

	ROIC % (Q: Dec. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2008 )	+	Invested Capital (Q: Dec. 2009 ))	/ count )
=	0.124 * ( 1 - 0% )	/	( (6.632	+	6.73)	/ 2 )
=	0.124	/	6.681
=	1.86 %

where

	Invested Capital		(Q: Dec. 2008 )
=	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	))
=	4.754	-	1.087	-	( 0	-	max(0, 3.18	-	0.215	+	0	))
=	6.632

	Invested Capital		(Q: Dec. 2009 )
=	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	))
=	5.443	-	1.122	-	( 0	-	max(0, 2.848	-	0.439	+	0	))
=	6.73

Note: The Operating Income data used here is one times the annual (Dec. 2009) data.

PPJ Healthcare Enterprises (OTCPK:PPJE) 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, PPJ Healthcare Enterprises's WACC % is 0.00%. PPJ Healthcare Enterprises'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.

PPJ Healthcare Enterprises ROIC % Related Terms

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PPJ Healthcare Enterprises (PPJ Healthcare Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » PPJ Healthcare Enterprises Inc (OTCPK:PPJE) » Definitions » ROIC %

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Address

401 East Jackson Street, Suite 2340, Tampa, FL, USA, 33602

Website

https://www.ppjenterprise.com

PPJ Healthcare Enterprises Inc engages in joint venturing with doctors in setting up new practices, marketing, and management of pain management practices and blood culture labs. The company also engages in the development and testing of medical marijuana, medical cannabis products, and medical billing specialties in anesthesiology. The projects of the company include automated biller, medical billing service, pain management center, and Lab testing.