HomeCo Daily Needs REIT (ASX:HDN) ROCE % : 1.10% (As of Dec. 2023)

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What is HomeCo Daily Needs REIT ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. HomeCo Daily Needs REIT's annualized ROCE % for the quarter that ended in Dec. 2023 was 1.10%.

HomeCo Daily Needs REIT ROCE % Historical Data

The historical data trend for HomeCo Daily Needs REIT's ROCE % 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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HomeCo Daily Needs REIT ROCE % Chart

HomeCo Daily Needs REIT Annual Data

Trend

Jun22

Jun23

ROCE %

7.56

3.39

HomeCo Daily Needs REIT Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	13.61	13.81	5.09	1.73	1.10

HomeCo Daily Needs REIT ROCE % Calculation

HomeCo Daily Needs REIT's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	160.4	/	( ( (4856.2 - 117.2)	+	(4825.4 - 106) )	/ 2 )
	=	160.4	/	( (4739	+	4719.4)	/ 2 )
	=	160.4	/	4729.2
	=	3.39 %

HomeCo Daily Needs REIT's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	51.2	/	( ( (4825.4 - 106)	+	(4714.2 - 103.9) )	/ 2 )
	=	51.2	/	( ( 4719.4	+	4610.3 )	/ 2 )
	=	51.2	/	4664.85
	=	1.10 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

HomeCo Daily Needs REIT (ASX:HDN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

HomeCo Daily Needs REIT ROCE % Related Terms

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HomeCo Daily Needs REIT (ASX:HDN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » HomeCo Daily Needs REIT (ASX:HDN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Macquarie Place, Level 7, Gateway, Sydney, NSW, AUS, 2000

Website

https://www.home-co.com.au

HomeCo Daily Needs REIT, or HomeCo, is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. HomeCo targets 50% of assets in neighbourhood malls, 30% large-format, and 20% in health and services. After merging with Aventus Retail REIT in 2022, HomeCo is overweight large-format (just under half its portfolio) and underweight neighbourhood (one third of the portfolio), with health and services slightly below target. The plan is to move back to the target via redevelopment and tenant remixing, and potentially acquisitions. HomeCo seeks tenant leases before commencing developments, so we expect development opportunities will arise gradually, as population growth adds demand in HomeCo's catchments.

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