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Avrupakent Gayrimenkul Yatirim Ortakligi (IST:AVPGY) ROC % : -102.36% (As of Sep. 2023)


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What is Avrupakent Gayrimenkul Yatirim Ortakligi 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 %. Avrupakent Gayrimenkul Yatirim Ortakligi's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -102.36%.

As of today (2024-05-28), Avrupakent Gayrimenkul Yatirim Ortakligi's WACC % is 10.64%. Avrupakent Gayrimenkul Yatirim Ortakligi's ROC % is -23.11% (calculated using TTM income statement data). Avrupakent Gayrimenkul Yatirim Ortakligi earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avrupakent Gayrimenkul Yatirim Ortakligi ROC % Historical Data

The historical data trend for Avrupakent Gayrimenkul Yatirim Ortakligi'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.

* Premium members only.

Avrupakent Gayrimenkul Yatirim Ortakligi ROC % Chart

Avrupakent Gayrimenkul Yatirim Ortakligi Annual Data
Trend Dec20 Dec21 Dec22
ROC %
3.94 1.51 17.68

Avrupakent Gayrimenkul Yatirim Ortakligi Quarterly Data
Dec20 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23
ROC % Get a 7-Day Free Trial - - 28.70 - -102.36

Avrupakent Gayrimenkul Yatirim Ortakligi ROC % Calculation

Avrupakent Gayrimenkul Yatirim Ortakligi's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=1363.626 * ( 1 - 7.31% )/( (3338.946 + 10956.289)/ 2 )
=1263.9449394/7147.6175
=17.68 %

where

Invested Capital(A: Dec. 2021 )
=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))
=3565.924 - 312.901 - ( 8.724 - max(0, 1213.933 - 1128.01+8.724))
=3338.946

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))
=11550.469 - 552.085 - ( 42.095 - max(0, 658.964 - 2088.138+42.095))
=10956.289

Avrupakent Gayrimenkul Yatirim Ortakligi's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-14850.94 * ( 1 - 0% )/( (13701.743 + 15315.917)/ 2 )
=-14850.94/14508.83
=-102.36 %

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))
=13960.105 - 232.66 - ( 25.702 - max(0, 359.597 - 1421.501+25.702))
=13701.743

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))
=15737.141 - 365.596 - ( 55.628 - max(0, 463.561 - 910.314+55.628))
=15315.917

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

Avrupakent Gayrimenkul Yatirim Ortakligi  (IST:AVPGY) 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, Avrupakent Gayrimenkul Yatirim Ortakligi's WACC % is 10.64%. Avrupakent Gayrimenkul Yatirim Ortakligi's ROC % is -23.11% (calculated using TTM income statement data). Avrupakent Gayrimenkul Yatirim Ortakligi 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.

Avrupakent Gayrimenkul Yatirim Ortakligi ROC % Related Terms

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Avrupakent Gayrimenkul Yatirim Ortakligi (IST:AVPGY) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Avrupakent Gayrimenkul Yatirim Ortakligi (IST:AVPGY) » Definitions » ROC %
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Address
Atakoy 7-8-9-10, Kisim Mah C. Cesme E-5, Yanyol Cad.N.8/2/7, Bakirkoy, Istanbul, TUR
Website
https://www.avrupakentgyo.com
Avrupakent Gayrimenkul Yatirim Ortakligi is a company that has business activities in the fields of real estate development, rental and management. It contains valuable portfolios of the country with its shopping malls, residences and other real estate. It also develops projects and rents or sells operating real estate.

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