Quality Online Education Group (Quality Online Education Group) ROIC % : -181.43% (As of May. 2023)

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What is Quality Online Education Group 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 %. Quality Online Education Group's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2023 was -181.43%.

As of today (2024-05-13), Quality Online Education Group's WACC % is 0.82%. Quality Online Education Group's ROIC % is -108.26% (calculated using TTM income statement data). Quality Online Education Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Quality Online Education Group ROIC % Historical Data

The historical data trend for Quality Online Education Group'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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Quality Online Education Group ROIC % Chart

Quality Online Education Group Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Aug13

Aug14

Aug21

Aug22

ROIC %

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-37.50

33.44

24.67

-45.44

-168.22

Quality Online Education Group Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23
ROIC %	Get a 7-Day Free Trial															-	-51.98	-111.14	-88.32	-181.43

Competitive Comparison of Quality Online Education Group's ROIC %

For the Education & Training Services subindustry, Quality Online Education Group'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.

Quality Online Education Group's ROIC % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Quality Online Education Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Quality Online Education Group's ROIC % falls into.

Quality Online Education Group ROIC % Calculation

Quality Online Education Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2022 is calculated as:

	ROIC % (A: Aug. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2021 )	+	Invested Capital (A: Aug. 2022 ))	/ count )
=	-3.79 * ( 1 - 0% )	/	( (2.182	+	2.324)	/ 2 )
=	-3.79	/	2.253
=	-168.22 %

where

	Invested Capital		(A: Aug. 2021 )
=	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	))
=	1.27	-	0.474	-	( 0.104	-	max(0, 1.604	-	0.218	+	0.104	))
=	2.182

	Invested Capital		(A: Aug. 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	))
=	0.984	-	0.313	-	( 0.18	-	max(0, 1.874	-	0.221	+	0.18	))
=	2.324

Quality Online Education Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2023 is calculated as:

	ROIC % (Q: May. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: May. 2023 ))	/ count )
=	-10.2 * ( 1 - 0% )	/	( (5.05	+	6.194)	/ 2 )
=	-10.2	/	5.622
=	-181.43 %

where

	Invested Capital		(Q: Feb. 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	))
=	1.783	-	0.393	-	( 0.168	-	max(0, 3.864	-	0.204	+	0.168	))
=	5.05

	Invested Capital		(Q: May. 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	))
=	1.982	-	0.817	-	( 0.167	-	max(0, 5.282	-	0.253	+	0.167	))
=	6.194

Note: The Operating Income data used here is four times the quarterly (May. 2023) data.

Quality Online Education Group (OTCPK:QOEG) 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, Quality Online Education Group's WACC % is 0.82%. Quality Online Education Group's ROIC % is -108.26% (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.

Quality Online Education Group ROIC % Related Terms

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Quality Online Education Group (Quality Online Education Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Quality Online Education Group Inc (OTCPK:QOEG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

55 Commerce Valley Dr. West, Thornhill, ON, CAN, L3T7V9

Website

https://www.qualityonline.education

Quality Online Education Group Inc is a e-Learning company that provides comprehensive online English lessons to students in China and expanding to other markets where English education is sought after. The company is a pioneer and industry leader in providing real-time online small group classes. The main business scope of the Group includes K12 English Online education services, courseware development and education-technology platform development. The students achieve noticeable and quantifiable results, by delivery of quality education from passionate team of teachers and teaching assistants, based in North America and the Philippines.

Executives

Amanda Anderson	director	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Fu Kei Man Derek	director	2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Yin Yee Tso	director, officer: Chief Operating Officer	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Wing Yee Tong	10 percent owner	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Lai Ying Li	director, officer: Chairman, CEO, CFO and Sec.	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Wing Shan Tong	10 percent owner	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR
Yiu Kwong Pang	director	UNITS 2611-13A, 26/F, 113 ARGYLE STREET, MONGKOK, KOWLOON K3 SAR