Altus Group (Altus Group) ROC % : -2.08% (As of Dec. 2023)

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What is Altus Group 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 %. Altus Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -2.08%.

As of today (2024-04-30), Altus Group's WACC % is 7.62%. Altus Group's ROC % is 2.06% (calculated using TTM income statement data). Altus Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Altus Group ROC % Historical Data

The historical data trend for Altus Group'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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Altus Group ROC % Chart

Altus Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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5.19

6.40

4.36

-1.09

2.10

Altus Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															6.41	1.19	4.32	0.89	-2.08

Altus Group ROC % Calculation

Altus Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	36.379 * ( 1 - 54.18% )	/	( (802.869	+	781.317)	/ 2 )
=	16.6688578	/	792.093
=	2.10 %

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	))
=	930.354	-	86.803	-	( 40.682	-	max(0, 176.562	-	235.464	+	40.682	))
=	802.869

	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	))
=	905.406	-	92.864	-	( 31.225	-	max(0, 162.698	-	225.524	+	31.225	))
=	781.317

Altus Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	39.8 * ( 1 - 140.78% )	/	( (781.216	+	781.317)	/ 2 )
=	-16.23044	/	781.2665
=	-2.08 %

where

	Invested Capital		(Q: Sep. 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	))
=	907.717	-	93.485	-	( 33.016	-	max(0, 167.348	-	237.267	+	33.016	))
=	781.216

	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	))
=	905.406	-	92.864	-	( 31.225	-	max(0, 162.698	-	225.524	+	31.225	))
=	781.317

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Altus Group (OTCPK:ASGTF) 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, Altus Group's WACC % is 7.62%. Altus Group's ROC % is 2.06% (calculated using TTM income statement data). Altus Group 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.

Altus Group ROC % Related Terms

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Altus Group (Altus Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Altus Group Ltd (OTCPK:ASGTF) » Definitions » ROC %

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AIF:Canada

Address

33 Yonge Street, Suite 500, Toronto, ON, CAN, M5E 1G4

Website

https://www.altusgroup.com

Altus Group Ltd operates in the Canadian real estate sector. Its services can be summed up as advisory services, software and data solutions to the property and real estate industry. The company has three reportable segments namely Property Tax, Analytics; and under CRE Consulting services, and Appraisals and Development Advisory. It generates maximum revenue from the Analytics; and under CRE Consulting services segment. A part of its revenue is also derived from the United States, Europe, and the Asia Pacific.