GWB Immobilien AG (STU:G7B) ROC % : -12.39% (As of Sep. 2011)

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What is GWB Immobilien AG 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 %. GWB Immobilien AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2011 was -12.39%.

As of today (2024-06-10), GWB Immobilien AG's WACC % is 0.00%. GWB Immobilien AG's ROC % is 0.00% (calculated using TTM income statement data). GWB Immobilien AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GWB Immobilien AG ROC % Historical Data

The historical data trend for GWB Immobilien AG'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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GWB Immobilien AG ROC % Chart

GWB Immobilien AG Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

ROC %

71.44

9.73

-0.51

-0.32

-0.16

GWB Immobilien AG Quarterly Data
	Dec07	Jun08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
ROC %	Get a 7-Day Free Trial									-126.31	-5.63	-1.47	-26.71	-12.39

GWB Immobilien AG ROC % Calculation

GWB Immobilien AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2010 is calculated as:

	ROC % (A: Dec. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2009 )	+	Invested Capital (A: Dec. 2010 ))	/ count )
=	-0.332 * ( 1 - 16.45% )	/	( (181.477	+	157.846)	/ 2 )
=	-0.277386	/	169.6615
=	-0.16 %

where

	Invested Capital		(A: Dec. 2009 )
=	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	))
=	138.317	-	6.991	-	( 1.818	-	max(0, 93.487	-	43.336	+	1.818	))
=	181.477

	Invested Capital		(A: Dec. 2010 )
=	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	))
=	123.658	-	9.002	-	( 0.322	-	max(0, 74.159	-	30.969	+	0.322	))
=	157.846

GWB Immobilien AG's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2011 is calculated as:

	ROC % (Q: Sep. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2011 )	+	Invested Capital (Q: Sep. 2011 ))	/ count )
=	-17.992 * ( 1 - -2.97% )	/	( (145.998	+	153.025)	/ 2 )
=	-18.5263624	/	149.5115
=	-12.39 %

where

	Invested Capital		(Q: Jun. 2011 )
=	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	))
=	131.451	-	7.315	-	( 0.229	-	max(0, 60.301	-	38.439	+	0.229	))
=	145.998

	Invested Capital		(Q: Sep. 2011 )
=	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	))
=	133.427	-	3.78	-	( 0.201	-	max(0, 64.222	-	40.844	+	0.201	))
=	153.025

Note: The Operating Income data used here is four times the quarterly (Sep. 2011) data.

GWB Immobilien AG (STU:G7B) 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, GWB Immobilien AG's WACC % is 0.00%. GWB Immobilien AG's ROC % is 0.00% (calculated using TTM income statement data). GWB Immobilien AG 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.

GWB Immobilien AG ROC % Related Terms

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GWB Immobilien AG (STU:G7B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » GWB Immobilien AG (STU:G7B) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Hauptstrasse 1 A, Siek bei Hamburg, DEU, 22962

Website

http://www.gwb-immobilien.de

The company focuses on the implementation of large retail properties as well as on the revitalization of existing shopping centers. The company offers an integrated solution, ranging from project development and construction to marketing and management.

GWB Immobilien AG (STU:G7B) Headlines

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