ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pope Resources LP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2020 was -4.99%.
As of today (2024-05-11), Pope Resources LP's WACC % is 0.00%. Pope Resources LP's ROIC % is 0.00% (calculated using TTM income statement data).
Pope Resources LP earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pope Resources LP ROIC % Historical Data
The historical data trend for Pope Resources LP'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.
Competitive Comparison of Pope Resources LP's ROIC %
For the Lumber & Wood Production subindustry, Pope Resources LP'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.
Pope Resources LP's ROIC % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Pope Resources LP's ROIC % distribution charts can be found below:
* The bar in red indicates where Pope Resources LP's ROIC % falls into.
Pope Resources LP ROIC % Calculation
Pope Resources LP's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2019 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Mar. 2020) 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.
Pope Resources LP (NAS:POPE) 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, Pope Resources LP's WACC % is 0.00%. Pope Resources LP's ROIC % is 0.00% (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.
Pope Resources LP ROIC % Related Terms
Thank you for viewing the detailed overview of Pope Resources LP's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pope Resources LP (Pope Resources LP) Business Description
Pope Resources LP is a United States based company engaged in four business segments: Partnership Timber, Funds Timber, Timberland Investment Management, and Real Estate. Its Partnership Timber and Funds Timber operations, which are the maximum revenue generating segments include growing, managing, harvesting, and marketing timber from land that it owns or co-owns with its timber fund investors. Timberland Investment Management segment engages in organizing and managing private equity timber funds. Its Real Estate division focuses on a portfolio of land in the west Puget Sound region of Washington, and it also owns and manages the historic town of Port Gamble, Washington.
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