Dc Healthcare Holdings Bhd (XKLS:0283) ROC % : 6.08% (As of Dec. 2023)

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What is Dc Healthcare Holdings Bhd 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 %. Dc Healthcare Holdings Bhd's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.08%.

As of today (2024-06-10), Dc Healthcare Holdings Bhd's WACC % is 9.74%. Dc Healthcare Holdings Bhd's ROC % is 6.08% (calculated using TTM income statement data). Dc Healthcare Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dc Healthcare Holdings Bhd ROC % Historical Data

The historical data trend for Dc Healthcare Holdings Bhd'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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Dc Healthcare Holdings Bhd ROC % Chart

Dc Healthcare Holdings Bhd Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

10.61

16.56

23.55

29.12

6.08

Dc Healthcare Holdings Bhd Semi-Annual Data
	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	10.61	16.56	23.55	29.12	6.08

Dc Healthcare Holdings Bhd ROC % Calculation

Dc Healthcare Holdings Bhd's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	6.485 * ( 1 - 49.58% )	/	( (43.2	+	64.291)	/ 2 )
=	3.269737	/	53.7455
=	6.08 %

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	))
=	48.317	-	4.916	-	( 7.674	-	max(0, 14.877	-	15.078	+	7.674	))
=	43.2

	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	))
=	99.165	-	5.455	-	( 30.343	-	max(0, 16.311	-	45.73	+	30.343	))
=	64.291

Dc Healthcare Holdings Bhd's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	6.485 * ( 1 - 49.58% )	/	( (43.2	+	64.291)	/ 2 )
=	3.269737	/	53.7455
=	6.08 %

where

	Invested Capital		(Q: 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	))
=	48.317	-	4.916	-	( 7.674	-	max(0, 14.877	-	15.078	+	7.674	))
=	43.2

	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	))
=	99.165	-	5.455	-	( 30.343	-	max(0, 16.311	-	45.73	+	30.343	))
=	64.291

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

Dc Healthcare Holdings Bhd (XKLS:0283) 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, Dc Healthcare Holdings Bhd's WACC % is 9.74%. Dc Healthcare Holdings Bhd's ROC % is 6.08% (calculated using TTM income statement data). Dc Healthcare Holdings Bhd 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.

Dc Healthcare Holdings Bhd ROC % Related Terms

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Dc Healthcare Holdings Bhd (XKLS:0283) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Dc Healthcare Holdings Bhd (XKLS:0283) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Centrepoint South Mid Valley City, Suites 22.01, 22.02 & 22.05, Level 22, Lingkaran Syed Putra, Kuala Lumpur, MYS, 59200

Website

https://www.dchealthcareholdings.com

Dc Healthcare Holdings Bhd Is an investment holding company. Through its subsidiaries, the company provides Aesthetic Services specializing in Non-Invasive and Minimally-Invasive procedures. Non-Invasive procedures are medical procedures that do not involve entering the body through surgical incisions; whilst Minimally Invasive procedures limit the size and quantity of incisions and injections thereby reducing wound healing time, associated pain and risk of infection. The business activities are categorized into 2 segments, Aesthetic Services, and General Medical Services. The majority of revenue is derived from the Aesthetic Services segment.

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