ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Digital Core REIT's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 3.73%.
As of today (2024-05-18), Digital Core REIT's WACC % is 8.11%. Digital Core REIT's ROC % is 3.05% (calculated using TTM income statement data).
Digital Core REIT earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Digital Core REIT ROC % Historical Data
The historical data trend for Digital Core REIT'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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Digital Core REIT (SGX:DCRU) 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, Digital Core REIT's WACC % is 8.11%. Digital Core REIT's ROC % is 3.05% (calculated using TTM income statement data).
Digital Core REIT 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.
Digital Core REIT ROC % Related Terms
Thank you for viewing the detailed overview of Digital Core REIT's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Digital Core REIT is an S-REIT established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilized income-producing real estate assets located globally which are majorly used for data centre purposes, as well as assets necessary to support the digital economy. The company's geographical presence in North America (U.S. and Canada) and Germany. Company earns majority of its revenue from North America segment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SGX:DCRU has been successfully added to your 