GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Portsmouth Square Inc (OTCPK:PRSI) » Definitions » ROIC %

Portsmouth Square (Portsmouth Square) ROIC % : -5.11% (As of Dec. 2023)


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

What is Portsmouth Square 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 %. Portsmouth Square's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -5.11%.

As of today (2024-04-25), Portsmouth Square's WACC % is 6.69%. Portsmouth Square's ROIC % is 6.67% (calculated using TTM income statement data). Portsmouth Square earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Portsmouth Square ROIC % Historical Data

The historical data trend for Portsmouth Square'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.

Portsmouth Square ROIC % Chart

Portsmouth Square Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.29 3.97 -10.62 1.92 20.50

Portsmouth Square 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 0.08 6.25 8.36 7.67 -5.11

Competitive Comparison of Portsmouth Square's ROIC %

For the Lodging subindustry, Portsmouth Square'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.


Portsmouth Square's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Portsmouth Square's ROIC % distribution charts can be found below:

* The bar in red indicates where Portsmouth Square's ROIC % falls into.



Portsmouth Square ROIC % Calculation

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

ROIC % (A: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Jun. 2023 ))/ count )
=3.062 * ( 1 - -149.54% )/( (39.432 + 35.116)/ 2 )
=7.6409148/37.274
=20.50 %

where

Portsmouth Square'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 )
=-1.82 * ( 1 - 0% )/( (35.045 + 36.152)/ 2 )
=-1.82/35.5985
=-5.11 %

where

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.


Portsmouth Square  (OTCPK:PRSI) 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, Portsmouth Square's WACC % is 6.69%. Portsmouth Square's ROIC % is 6.67% (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.


Portsmouth Square ROIC % Related Terms

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


Portsmouth Square (Portsmouth Square) Business Description

Traded in Other Exchanges
N/A
Address
1516 S. Bundy Drive, Suite 200, Los Angeles, CA, USA, 90025
Portsmouth Square Inc is a US-based company. It is formed for the purpose of acquiring a hotel property in San Francisco, California through a California limited partnership, Justice Investors Limited Partnership. The company operates through two segments Hotel Operations and Investment Transactions. The Hotel Operations segment is engaged in the operation of hotel property referred as Hilton San Francisco Financial District and provides related facilities, including underground parking garage. The Investment Transactions segment includes the investment of cash in marketable securities and other investments. The company generates the majority of its revenue from the Hotel Operations segment.
Executives
John V Winfield director, officer: PRESIDENT, CHAIRMAN, CEO 11620 WILSHIRE BOULEVARD, SUITE 350, LOS ANGELES CA 90025
Intergroup Corp 10 percent owner 11620 WILSHIRE BOULEVARD, SUITE 350, LOS ANGELES CA 90025
Babin C Jerold director 11620 WILSHIRE BOULEVARD, SUITE 350, LOS ANGELES, LOS ANGELES CA 90025
Danfeng Xu officer: Treasurer and Controller 1100 GLENDON AVENUE, SUITE PH-1, LOS ANGELES CA 90024
Santa Fe Financial Corp 10 percent owner 11620 WILSHIRE BOULEVARD, SUITE 350, LOS ANGELES CA 90025

Portsmouth Square (Portsmouth Square) Headlines