Haoxi Health Technology (Haoxi Health Technology) ROC % : 55.33% (As of Dec. 2023)

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What is Haoxi Health Technology 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 %. Haoxi Health Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 55.33%.

As of today (2024-06-07), Haoxi Health Technology's WACC % is 10.27%. Haoxi Health Technology's ROC % is 52.24% (calculated using TTM income statement data). Haoxi Health Technology generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Haoxi Health Technology ROC % Historical Data

The historical data trend for Haoxi Health Technology'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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Haoxi Health Technology ROC % Chart

Haoxi Health Technology Annual Data

Trend

Jun21

Jun22

Jun23

ROC %

31.12

28.71

53.28

Haoxi Health Technology Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial			23.09	35.72	69.79	44.24	55.33

Haoxi Health Technology ROC % Calculation

Haoxi Health Technology's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	1.196 * ( 1 - 18.57% )	/	( (0.771	+	2.885)	/ 2 )
=	0.9739028	/	1.828
=	53.28 %

where

	Invested Capital		(A: Jun. 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	))
=	0.543	-	1.336	-	( 0.294	-	max(0, 2.009	-	0.445	+	0.294	))
=	0.771

	Invested Capital		(A: Jun. 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	))
=	4.464	-	0.482	-	( 1.203	-	max(0, 2.577	-	3.674	+	1.203	))
=	2.885

Haoxi Health Technology'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1.636 * ( 1 - 5% )	/	( (2.885	+	2.733)	/ 2 )
=	1.5542	/	2.809
=	55.33 %

where

	Invested Capital		(Q: Jun. 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	))
=	4.464	-	0.482	-	( 1.203	-	max(0, 2.577	-	3.674	+	1.203	))
=	2.885

	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	))
=	6.175	-	2.329	-	( 1.113	-	max(0, 4.128	-	5.406	+	1.113	))
=	2.733

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

Haoxi Health Technology (NAS:HAO) 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, Haoxi Health Technology's WACC % is 10.27%. Haoxi Health Technology's ROC % is 52.24% (calculated using TTM income statement data). Haoxi Health Technology generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Haoxi Health Technology ROC % Related Terms

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Haoxi Health Technology (Haoxi Health Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Haoxi Health Technology Ltd (NAS:HAO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Anli Road, Room 801, Tower C, Floor 8, Building 103, Huizhongli, Chaoyang, Beijing, CHN

Website

https://www.haoximedia.com

Haoxi Health Technology Ltd is an online marketing solution provider in China, with an advertiser client base mainly in the healthcare industry. Haoxi has been rooted in the field of local online effect marketing for many years, serving leading customers in various industries at home and abroad, and its main business is the medical industry. It generates its revenue by providing one-stop online marketing solutions, in particular online short video marketing solutions, to advertisers through its media partners. The company provides customized marketing solutions by planning, producing, placing, and optimizing online ads, especially online short video ads, to help its advertisers acquire, convert, and retain ultimate consumers on various online media platforms.

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