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American Oncology Network (American Oncology Network) ROC % : -55.61% (As of Mar. 2024)


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What is American Oncology Network 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 %. American Oncology Network's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -55.61%.

As of today (2024-06-08), American Oncology Network's WACC % is 5.97%. American Oncology Network's ROC % is -24.06% (calculated using TTM income statement data). American Oncology Network earns returns that do not match up to its cost of capital. It will destroy value as it grows.


American Oncology Network ROC % Historical Data

The historical data trend for American Oncology Network'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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American Oncology Network ROC % Chart

American Oncology Network Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROC %
- -0.22 5.83 -10.12

American Oncology Network Quarterly Data
Dec20 Dec21 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial 14.15 3.28 0.46 -42.61 -55.61

American Oncology Network ROC % Calculation

American Oncology Network'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 )
=-17.918 * ( 1 - -0.61% )/( (180.503 + 175.849)/ 2 )
=-18.0272998/178.176
=-10.12 %

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))
=326.228 - 108.948 - ( 36.777 - max(0, 140.938 - 242.019+36.777))
=180.503

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))
=374.453 - 134.676 - ( 63.928 - max(0, 169.045 - 277.803+63.928))
=175.849

American Oncology Network's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-75.544 * ( 1 - -13.09% )/( (175.849 + 131.385)/ 2 )
=-85.4327096/153.617
=-55.61 %

where

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))
=374.453 - 134.676 - ( 63.928 - max(0, 169.045 - 277.803+63.928))
=175.849

Invested Capital(Q: Mar. 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))
=421.921 - 200.402 - ( 105.049 - max(0, 233.829 - 323.963+105.049))
=131.385

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

* 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.


American Oncology Network  (NAS:AONCW) 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, American Oncology Network's WACC % is 5.97%. American Oncology Network's ROC % is -24.06% (calculated using TTM income statement data). American Oncology Network 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.


American Oncology Network ROC % Related Terms

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American Oncology Network (American Oncology Network) Business Description

Traded in Other Exchanges
Address
10485 NE 6th Street, Unit 3930, Bellevue, WA, USA, 98004
American Oncology Network Inc Formerly American Oncology Network LLC is an alliance of physicians and seasoned healthcare leaders who provide comprehensive oncology services through 24 oncology practices located in Arkansas, Louisiana, Indiana, Virginia, Ohio, Nevada, Iowa, Missouri, Washington, North Carolina, Michigan, Maryland, South Carolina, Arizona, and Georgia. The Company also provides expertise in drug procurement and payor contracting, along with practice diversification through centralized laboratory and pathology services, as well as specialty pharmacy services.