INVL Baltic Real Estate (OVSE:INR1L) ROIC % : 4.18% (As of Dec. 2023)

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What is INVL Baltic Real Estate 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 %. INVL Baltic Real Estate's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 4.18%.

As of today (2024-05-09), INVL Baltic Real Estate's WACC % is 7.59%. INVL Baltic Real Estate's ROIC % is 4.20% (calculated using TTM income statement data). INVL Baltic Real Estate earns returns that do not match up to its cost of capital. It will destroy value as it grows.

INVL Baltic Real Estate ROIC % Historical Data

The historical data trend for INVL Baltic Real Estate'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.

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INVL Baltic Real Estate ROIC % Chart

INVL Baltic Real Estate Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-0.89

1.69

2.77

1.81

4.28

INVL Baltic Real Estate Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															3.09	2.21	1.40	4.18	4.18

Competitive Comparison of INVL Baltic Real Estate's ROIC %

For the Real Estate Services subindustry, INVL Baltic Real Estate'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.

INVL Baltic Real Estate's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, INVL Baltic Real Estate's ROIC % distribution charts can be found below:

* The bar in red indicates where INVL Baltic Real Estate's ROIC % falls into.

INVL Baltic Real Estate ROIC % Calculation

INVL Baltic Real Estate's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	1.8 * ( 1 - 2.51% )	/	( (38.232	+	43.802)	/ 2 )
=	1.75482	/	41.017
=	4.28 %

where

	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	))
=	39.016	-	0.885	-	( 1.282	-	max(0, 1.887	-	1.786	+	1.282	))
=	38.232

	Invested Capital		(A: Dec. 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	))
=	44.564	-	0.976	-	( 1.275	-	max(0, 2.218	-	2.004	+	1.275	))
=	43.802

INVL Baltic Real Estate's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1.9 * ( 1 - 4.28% )	/	( (43.315	+	43.802)	/ 2 )
=	1.81868	/	43.5585
=	4.18 %

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	))
=	43.78	-	3.303	-	( 1.306	-	max(0, 4.68	-	1.842	+	1.306	))
=	43.315

	Invested Capital		(Q: Dec. 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	))
=	44.564	-	0.976	-	( 1.275	-	max(0, 2.218	-	2.004	+	1.275	))
=	43.802

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

INVL Baltic Real Estate (OVSE:INR1L) 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, INVL Baltic Real Estate's WACC % is 7.59%. INVL Baltic Real Estate's ROIC % is 4.20% (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.

INVL Baltic Real Estate ROIC % Related Terms

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INVL Baltic Real Estate (OVSE:INR1L) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » INVL Baltic Real Estate (OVSE:INR1L) » Definitions » ROIC %

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Traded in Other Exchanges

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Address

Gyneju Street 14, Vilnius, LTU, 01109

Website

https://www.invlbalticrealestate.lt

INVL Baltic Real Estate is a real estate investment company seeks to ensure the growth of rental income and earn from investments in commercial real estate. The companies owned by INVL Baltic Real Estate invested in commercial real estate: business centers, manufacturing and warehouse properties in Lithuania and Latvia. All the properties are characterized by high occupancy rates and generate stable financial flows, most of them has further development potential. INVL Baltic Real Estate is operating as a closed-end investment company. Management of the company was assumed by INVL Asset Management, the leading alternative asset manager in the Baltics, a part of the leading Baltic asset management group Invalda INVL. The company will operate as a closed-end investment company until 2046.

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