Logistic Properties of the Americas (Logistic Properties of the Americas) ROC % : 0.02% (As of Mar. 2024)

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What is Logistic Properties of the Americas 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 %. Logistic Properties of the Americas's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.02%.

As of today (2024-06-05), Logistic Properties of the Americas's WACC % is 11.87%. Logistic Properties of the Americas's ROC % is 0.20% (calculated using TTM income statement data). Logistic Properties of the Americas earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Logistic Properties of the Americas ROC % Historical Data

The historical data trend for Logistic Properties of the Americas'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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Logistic Properties of the Americas ROC % Chart

Logistic Properties of the Americas Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

1.84

3.45

2.70

Logistic Properties of the Americas Quarterly Data
	Dec21	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial			2.07	4.30	1.53	2.79	0.02

Logistic Properties of the Americas ROC % Calculation

Logistic Properties of the Americas'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 )
=	25.886 * ( 1 - 41.04% )	/	( (578.02	+	550.561)	/ 2 )
=	15.2623856	/	564.2905
=	2.70 %

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	))
=	497.619	-	11.949	-	( 12.523	-	max(0, 125.656	-	33.306	+	12.523	))
=	578.02

	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	))
=	590.825	-	15.914	-	( 32.249	-	max(0, 34.553	-	58.903	+	32.249	))
=	550.561

Logistic Properties of the Americas's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	29.032 * ( 1 - 99.7% )	/	( (550.561	+	560.118)	/ 2 )
=	0.087096	/	555.3395
=	0.02 %

where

	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	))
=	590.825	-	15.914	-	( 32.249	-	max(0, 34.553	-	58.903	+	32.249	))
=	550.561

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	599.257	-	33.341	-	( 40.683	-	max(0, 51.53	-	57.328	+	40.683	))
=	560.118

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Logistic Properties of the Americas (AMEX:LPA) 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, Logistic Properties of the Americas's WACC % is 11.87%. Logistic Properties of the Americas's ROC % is 0.20% (calculated using TTM income statement data). Logistic Properties of the Americas 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.

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Logistic Properties of the Americas (Logistic Properties of the Americas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Logistic Properties of the Americas (AMEX:LPA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plaza Tempo, Edificio B, Oficina B1, Piso 2, San Rafael de Escazu, San Jose, CRI

Website

https://www.latamlp.com

Logistic Properties of the Americas is a fully-integrated, internally managed real estate company that develops, owns and manages a diversified portfolio of warehouse logistics assets in Central America and the South America. It focuses on modern Class A logistics real estate in high growth and high barrier-to-entry markets that are undersupplied and have low penetration rates.