PREOS Global Office Real Estate & Technology AG (XTER:PAG) ROIC % : -26.53% (As of Dec. 2022)

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What is PREOS Global Office Real Estate & Technology AG 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 %. PREOS Global Office Real Estate & Technology AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -26.53%.

As of today (2024-06-08), PREOS Global Office Real Estate & Technology AG's WACC % is 0.00%. PREOS Global Office Real Estate & Technology AG's ROIC % is 0.00% (calculated using TTM income statement data). PREOS Global Office Real Estate & Technology AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PREOS Global Office Real Estate & Technology AG ROIC % Historical Data

The historical data trend for PREOS Global Office Real Estate & Technology AG'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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PREOS Global Office Real Estate & Technology AG ROIC % Chart

PREOS Global Office Real Estate & Technology AG Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

1.36

-1.71

14.11

-0.33

-13.50

PREOS Global Office Real Estate & Technology AG Semi-Annual Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROIC %	Get a 7-Day Free Trial					17.62	-0.41	-0.25	-0.36	-26.53

Competitive Comparison of PREOS Global Office Real Estate & Technology AG's ROIC %

For the Real Estate Services subindustry, PREOS Global Office Real Estate & Technology AG'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.

PREOS Global Office Real Estate & Technology AG's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, PREOS Global Office Real Estate & Technology AG's ROIC % distribution charts can be found below:

* The bar in red indicates where PREOS Global Office Real Estate & Technology AG's ROIC % falls into.

PREOS Global Office Real Estate & Technology AG ROIC % Calculation

PREOS Global Office Real Estate & Technology AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-78.832 * ( 1 - -0% )	/	( (680.47	+	487.809)	/ 2 )
=	-78.832	/	584.1395
=	-13.50 %

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	))
=	694.429	-	13.838	-	( 0.121	-	max(0, 14.127	-	77.239	+	0.121	))
=	680.47

	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	))
=	490.367	-	0.242	-	( 2.316	-	max(0, 6.148	-	34.911	+	2.316	))
=	487.809

PREOS Global Office Real Estate & Technology AG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROIC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-155.2 * ( 1 - -0% )	/	( (682.158	+	487.809)	/ 2 )
=	-155.2	/	584.9835
=	-26.53 %

where

	Invested Capital		(Q: Jun. 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	))
=	696.175	-	13.581	-	( 0.436	-	max(0, 13.581	-	51.441	+	0.436	))
=	682.158

	Invested Capital		(Q: 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	))
=	490.367	-	0.242	-	( 2.316	-	max(0, 6.148	-	34.911	+	2.316	))
=	487.809

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

PREOS Global Office Real Estate & Technology AG (XTER:PAG) 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, PREOS Global Office Real Estate & Technology AG's WACC % is 0.00%. PREOS Global Office Real Estate & Technology AG'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.

PREOS Global Office Real Estate & Technology AG ROIC % Related Terms

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PREOS Global Office Real Estate & Technology AG (XTER:PAG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » PREOS Global Office Real Estate & Technology AG (XTER:PAG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

PAG:Germany PAG:Germany

Address

Landsteinerstrasse 6, Leipzig, DEU, 04103

Website

https://www.preos.de

PREOS Global Office Real Estate & Technology AG is an active real estate investor focusing on office properties. It acts as an efficiently positioned management holding company. The focus of its purchasing activities is on office properties with development potential in German metropolitan regions. Developed portfolio properties are sold when appropriate sales opportunities arise. The corporate is to expand the real estate portfolio through acquisitions.