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Leveljump Healthcare (Leveljump Healthcare) ROC % : -7.32% (As of Sep. 2023)


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What is Leveljump Healthcare 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 %. Leveljump Healthcare's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -7.32%.

As of today (2024-06-10), Leveljump Healthcare's WACC % is 11.60%. Leveljump Healthcare's ROC % is -4.19% (calculated using TTM income statement data). Leveljump Healthcare earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Leveljump Healthcare ROC % Historical Data

The historical data trend for Leveljump Healthcare'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.

* Premium members only.

Leveljump Healthcare ROC % Chart

Leveljump Healthcare Annual Data
Trend Aug19 Aug20 Dec21 Dec22
ROC %
- -85.96 -259.41 -12.09

Leveljump Healthcare Quarterly Data
Nov19 Aug20 Nov20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.99 -8.52 -1.96 -6.38 -7.32

Leveljump Healthcare ROC % Calculation

Leveljump Healthcare's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-0.553 * ( 1 - 0% )/( (1.175 + 7.975)/ 2 )
=-0.553/4.575
=-12.09 %

where

Invested Capital(A: Dec. 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))
=3.202 - 1.463 - ( 0.591 - max(0, 1.483 - 2.047+0.591))
=1.175

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))
=9.759 - 1.723 - ( 0.061 - max(0, 2.182 - 2.478+0.061))
=7.975

Leveljump Healthcare'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 )
=-0.616 * ( 1 - 0% )/( (8.868 + 7.973)/ 2 )
=-0.616/8.4205
=-7.32 %

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))
=10.616 - 2.109 - ( 0.081 - max(0, 2.657 - 2.296+0.081))
=8.868

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))
=10.674 - 2.023 - ( 0.678 - max(0, 2.923 - 3.627+0.678))
=7.973

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

Leveljump Healthcare  (OTCPK:JMPHF) 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, Leveljump Healthcare's WACC % is 11.60%. Leveljump Healthcare's ROC % is -4.19% (calculated using TTM income statement data). Leveljump Healthcare 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.

Leveljump Healthcare ROC % Related Terms

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Leveljump Healthcare (Leveljump Healthcare) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Leveljump Healthcare Corp (OTCPK:JMPHF) » Definitions » ROC %
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Traded in Other Exchanges
JUMP:Canada
Address
85 Scarsdale Road, Suite 304, Toronto, ON, CAN, M3B 2R2
Website
https://www.leveljumphealthcare.com
Leveljump Healthcare Corp is engaged in the business of providing radiology solutions for hospitals, emergency rooms, and private clinics. The company offers telehealth services that are designed to provide a doctor-to-doctor collaboration and diagnosis allowing effective patient care.