GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » LTC Properties Inc (NYSE:LTC) » Definitions » ROIC %
中文

LTC Properties (LTC Properties) ROIC % : 6.20% (As of Dec. 2023)


View and export this data going back to 1992. Start your Free Trial

What is LTC Properties 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 %. LTC Properties's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 6.20%.

As of today (2024-04-24), LTC Properties's WACC % is 7.26%. LTC Properties's ROIC % is 6.65% (calculated using TTM income statement data). LTC Properties earns returns that do not match up to its cost of capital. It will destroy value as it grows.


LTC Properties ROIC % Historical Data

The historical data trend for LTC Properties'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.

* Premium members only.

LTC Properties ROIC % Chart

LTC Properties Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.51 5.91 5.50 6.31 6.87

LTC Properties Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.17 6.88 6.60 6.73 6.20

Competitive Comparison of LTC Properties's ROIC %

For the REIT - Healthcare Facilities subindustry, LTC Properties'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.


LTC Properties's ROIC % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, LTC Properties's ROIC % distribution charts can be found below:

* The bar in red indicates where LTC Properties's ROIC % falls into.



LTC Properties ROIC % Calculation

LTC Properties's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=116.595 * ( 1 - 0% )/( (1607.782 + 1787.298)/ 2 )
=116.595/1697.54
=6.87 %

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))
=1656.103 - 37.942 - ( 10.379 - max(0, 37.942 - 625.934+10.379))
=1607.782

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))
=1855.098 - 47.514 - ( 20.286 - max(0, 47.514 - 864.627+20.286))
=1787.298

LTC Properties's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=111.332 * ( 1 - 0% )/( (1805.304 + 1787.298)/ 2 )
=111.332/1796.301
=6.20 %

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))
=1867.863 - 51.257 - ( 11.302 - max(0, 413.507 - 830.292+11.302))
=1805.304

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))
=1855.098 - 47.514 - ( 20.286 - max(0, 47.514 - 864.627+20.286))
=1787.298

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


LTC Properties  (NYSE:LTC) 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, LTC Properties's WACC % is 7.26%. LTC Properties's ROIC % is 6.65% (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.


LTC Properties ROIC % Related Terms

Thank you for viewing the detailed overview of LTC Properties's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


LTC Properties (LTC Properties) Business Description

Traded in Other Exchanges
Address
2829 Townsgate Road, Suite 350, Westlake Village, CA, USA, 91361
LTC Properties Inc is a healthcare facility real estate investment trust. The company operates one segment that works to invest in healthcare facilities through mortgage loans, property lease transactions, and other investments. LTC generates all of its revenue in the United States. LTC is an active capital provider in the seniors housing and healthcare real estate industry. The company has been actively engaged with its operating partners to create a growing pipeline of projects.
Executives
Boyd W Hendrickson director 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265
Pamela Shelley-kessler officer: VP & Controller 300 ESPLANADE DR #1860, OXNARD CA 93036
David L Gruber director 2829 TOWNSGATE RD, STE 350, WESTLAKE VILLAGE CA 91361
Wendy Simpson director, officer: CFO & Treasurer 300 ESPLANADE DR #1860, OXNARD CA 93036
Caroline Wong officer: VP, Controller & Treasurer 2829 TOWNSGATE RD, SUITE 350, WESTLAKE VILLAGE CA 91361
Timothy Triche director 2358 NORTH VERMONT AVE, LOS ANGELES CA 90027
Cheng Cornelia director 2829 TOWNSGATE RD, STE 350, STE 350, WESTLAKE VILLAGE CA 91361
James Pieczynski director PACWEST BANCORP, 9701 WILSHIRE BOULEVARD, SUITE 700, BEVERLY HILLS CA 90212
Clint B Malin officer: VP & CIO 22917 PACIFIC COAST HWY, SUITE 350, MALIBU CA 90265
Brent P. Chappell officer: SVP, Inv. & Portfolio Mgmt 2829 TOWNSGATE RD #350, WESTLAKE VILLAGE CA 91361
Edmund King director 258 VINEYARD LANE, MESQUITE NV 89027
Thomas Andrew Stokes officer: VP, Marketing/Strat. Planning 31365 OAK CREST DRIVE, SUITE 200, WESTLAKE VILLAGE CA 91361
Peter G Lyew officer: VP, Director of Taxes 31365 OAK CREST DRVE, SUITE 200, WESTLAKE VILLAGE CA 91361
Andre C Dimitriadis director, officer: CEO and President 9955 SE WASHINTON, SUITE 201, PORTLAND OR 97216
Devra G Shapiro director C/O IPC THE HOSPITALIST COMPANY, INC., 4605 LANKERSHIM BLVD SUITE 617, NORTH HOLLYWOOD CA 91602