Medi Assist Healthcare Services (NSE:MEDIASSIST) ROC % : 11.84% (As of Mar. 2024)

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What is Medi Assist Healthcare Services 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 %. Medi Assist Healthcare Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 11.84%.

As of today (2024-05-24), Medi Assist Healthcare Services's WACC % is 13.12%. Medi Assist Healthcare Services's ROC % is 12.55% (calculated using TTM income statement data). Medi Assist Healthcare Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Medi Assist Healthcare Services ROC % Historical Data

The historical data trend for Medi Assist Healthcare Services'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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Medi Assist Healthcare Services ROC % Chart

Medi Assist Healthcare Services Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROC %

8.86

14.34

15.70

13.42

Medi Assist Healthcare Services Semi-Annual Data
	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial			-	18.53	13.60	12.19	11.84

Medi Assist Healthcare Services ROC % Calculation

Medi Assist Healthcare Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	902.28 * ( 1 - 15.51% )	/	( (4876.16	+	6481.65)	/ 2 )
=	762.336372	/	5678.905
=	13.42 %

where

	Invested Capital		(A: 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	))
=	7057.16	-	573.7	-	( 1607.3	-	max(0, 2785.36	-	4421.35	+	1607.3	))
=	4876.16

	Invested Capital		(A: 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	))
=	8505.84	-	441.99	-	( 2665.23	-	max(0, 3194.57	-	4776.77	+	2665.23	))
=	6481.65

Medi Assist Healthcare Services'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: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	907.12 * ( 1 - 12.86% )	/	( (6868.82	+	6481.65)	/ 2 )
=	790.464368	/	6675.235
=	11.84 %

where

	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	))
=	8026.19	-	547.36	-	( 750.9	-	max(0, 3328.5	-	3938.51	+	750.9	))
=	6868.82

	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	))
=	8505.84	-	441.99	-	( 2665.23	-	max(0, 3194.57	-	4776.77	+	2665.23	))
=	6481.65

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

Medi Assist Healthcare Services (NSE:MEDIASSIST) 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, Medi Assist Healthcare Services's WACC % is 13.12%. Medi Assist Healthcare Services's ROC % is 12.55% (calculated using TTM income statement data). Medi Assist Healthcare Services 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.

Medi Assist Healthcare Services ROC % Related Terms

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Medi Assist Healthcare Services (NSE:MEDIASSIST) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » Medi Assist Healthcare Services Ltd (NSE:MEDIASSIST) » Definitions » ROC %

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Website

Medi Assist Healthcare Services Ltd is a HealthTech and InsurTech company focused on administering health benefits across employers, retail members, and public health schemes. Its clients are insurance companies and also serve as an intermediary between (a) general and health insurance companies and the insured members, (b) insurance companies and healthcare providers (such as hospitals), and (c) the Government and beneficiaries of public health schemes. The company derives income by providing health management services, software subscription, software license services, consultancy services and other allied services pertaining to healthcare and health insurance sector. It also offers business support services and other technical services.

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