EpicQuest Education Group International (EpicQuest Education Group International) ROC % : -61.96% (As of Sep. 2023)

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What is EpicQuest Education Group International ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. EpicQuest Education Group International's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -61.96%.

As of today (2024-05-24), EpicQuest Education Group International's WACC % is 11.29%. EpicQuest Education Group International's ROC % is -52.83% (calculated using TTM income statement data). EpicQuest Education Group International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

EpicQuest Education Group International ROC % Historical Data

The historical data trend for EpicQuest Education Group International's ROC % 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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EpicQuest Education Group International ROC % Chart

EpicQuest Education Group International Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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18.91

9.87

-12.62

-58.65

-51.08

EpicQuest Education Group International Semi-Annual Data
	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial						-20.75	-55.36	-51.77	-45.28	-61.96

EpicQuest Education Group International ROC % Calculation

EpicQuest Education Group International's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-7.07 * ( 1 - -4.2% )	/	( (13.727	+	15.115)	/ 2 )
=	-7.36694	/	14.421
=	-51.08 %

where

	Invested Capital		(A: Sep. 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	))
=	24.003	-	2.261	-	( 11.443	-	max(0, 6.054	-	14.069	+	11.443	))
=	13.727

	Invested Capital		(A: 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	))
=	19.209	-	2.263	-	( 4.967	-	max(0, 6.88	-	8.711	+	4.967	))
=	15.115

EpicQuest Education Group International's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-7.76 * ( 1 - -12.22% )	/	( (12.996	+	15.115)	/ 2 )
=	-8.708272	/	14.0555
=	-61.96 %

where

	Invested Capital		(Q: Mar. 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	))
=	19.634	-	2.248	-	( 5.862	-	max(0, 4.397	-	8.787	+	5.862	))
=	12.996

	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	))
=	19.209	-	2.263	-	( 4.967	-	max(0, 6.88	-	8.711	+	4.967	))
=	15.115

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

EpicQuest Education Group International (NAS:EEIQ) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, EpicQuest Education Group International's WACC % is 11.29%. EpicQuest Education Group International's ROC % is -52.83% (calculated using TTM income statement data). EpicQuest Education Group International 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 %, ROC % 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.

EpicQuest Education Group International ROC % Related Terms

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EpicQuest Education Group International (EpicQuest Education Group International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » EpicQuest Education Group International Ltd (NAS:EEIQ) » Definitions » ROC %

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Address

1209 North University Boulevard, Middletown, OH, USA, 45042

Website

https://www.epicquesteducation.com

EpicQuest Education Group International Ltd provides comprehensive education solutions for domestic and international students interested in university and college degree programs in the U.S., Canada, and the UK. In addition, the company has a recruiting relationship with the regional campuses of Miami University of Ohio, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses, and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University.