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Inmobiliaria Colonial SOCIMI (XMAD:COL) ROIC % : 2.35% (As of Sep. 2023)


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What is Inmobiliaria Colonial SOCIMI 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 %. Inmobiliaria Colonial SOCIMI's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 2.35%.

As of today (2024-05-01), Inmobiliaria Colonial SOCIMI's WACC % is 4.31%. Inmobiliaria Colonial SOCIMI's ROIC % is 2.15% (calculated using TTM income statement data). Inmobiliaria Colonial SOCIMI earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Inmobiliaria Colonial SOCIMI ROIC % Historical Data

The historical data trend for Inmobiliaria Colonial SOCIMI'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.

* Premium members only.

Inmobiliaria Colonial SOCIMI ROIC % Chart

Inmobiliaria Colonial SOCIMI Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.32 2.25 2.03 1.85 2.43

Inmobiliaria Colonial SOCIMI Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.20 2.06 2.01 2.66 2.35

Competitive Comparison of Inmobiliaria Colonial SOCIMI's ROIC %

For the REIT - Office subindustry, Inmobiliaria Colonial SOCIMI'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.


Inmobiliaria Colonial SOCIMI's ROIC % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Inmobiliaria Colonial SOCIMI's ROIC % distribution charts can be found below:

* The bar in red indicates where Inmobiliaria Colonial SOCIMI's ROIC % falls into.



Inmobiliaria Colonial SOCIMI ROIC % Calculation

Inmobiliaria Colonial SOCIMI's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=270.412 * ( 1 - -18.16% )/( (12973.162 + 13281.225)/ 2 )
=319.5188192/13127.1935
=2.43 %

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))
=12727.524 - 105.506 - ( 217.174 - max(0, 719.098 - 367.954+217.174))
=12973.162

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))
=13469.613 - 111.342 - ( 158.584 - max(0, 692.54 - 769.586+158.584))
=13281.225

Inmobiliaria Colonial SOCIMI's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=308.396 * ( 1 - 2.51% )/( (12794.664 + 0)/ 1 )
=300.6552604/12794.664
=2.35 %

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))
=12776.862 - 320.615 - ( 255.282 - max(0, 800.585 - 462.168+255.282))
=12794.664

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.


Inmobiliaria Colonial SOCIMI  (XMAD:COL) 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, Inmobiliaria Colonial SOCIMI's WACC % is 4.31%. Inmobiliaria Colonial SOCIMI's ROIC % is 2.15% (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.


Inmobiliaria Colonial SOCIMI ROIC % Related Terms

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Inmobiliaria Colonial SOCIMI (XMAD:COL) Business Description

Traded in Other Exchanges
Address
Paseo de la Castellana, 52, Madrid, ESP, 28046
Inmobiliaria Colonial SOCIMI SA is a real estate company in Spain. The company and its subsidiaries are in the business of lease and disposal of movable property and real estate. It specializes in leasing of offices in prime areas. The firm has rental business and land and development business segments. The activities of these segments include office rentals, shopping centers managed by Riofisa subgroup. The company mainly operates in Barcelona, Madrid, and Paris.

Inmobiliaria Colonial SOCIMI (XMAD:COL) Headlines

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