Black Sea Property (AQSE:BSP) ROC % : -1.31% (As of Jun. 2023)

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What is Black Sea Property 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 %. Black Sea Property's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -1.31%.

As of today (2024-06-21), Black Sea Property's WACC % is 0.32%. Black Sea Property's ROC % is -1.76% (calculated using TTM income statement data). Black Sea Property earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Black Sea Property ROC % Historical Data

The historical data trend for Black Sea Property'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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Black Sea Property ROC % Chart

Black Sea Property Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-2.61

-1.87

-1.40

-0.38

-1.89

Black Sea Property Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial										-1.31	0.65	-2.31	-2.31	-1.31

Black Sea Property ROC % Calculation

Black Sea Property's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-1.047 * ( 1 - 12.24% )	/	( (43.399	+	54.01)	/ 2 )
=	-0.9188472	/	48.7045
=	-1.89 %

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	))
=	43.918	-	0.193	-	( 0.326	-	max(0, 1.962	-	5.233	+	0.326	))
=	43.399

	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	))
=	55.056	-	0.807	-	( 0.239	-	max(0, 5.144	-	6.571	+	0.239	))
=	54.01

Black Sea Property's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.69 * ( 1 - 0% )	/	( (54.01	+	51.612)	/ 2 )
=	-0.69	/	52.811
=	-1.31 %

where

	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	))
=	55.056	-	0.807	-	( 0.239	-	max(0, 5.144	-	6.571	+	0.239	))
=	54.01

	Invested Capital		(Q: Jun. 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	))
=	53.348	-	1.351	-	( 0.385	-	max(0, 3.545	-	4.07	+	0.385	))
=	51.612

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Black Sea Property (AQSE:BSP) 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, Black Sea Property's WACC % is 0.32%. Black Sea Property's ROC % is -1.76% (calculated using TTM income statement data). Black Sea Property 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.

Black Sea Property ROC % Related Terms

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Black Sea Property (AQSE:BSP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Black Sea Property PLC (AQSE:BSP) » Definitions » ROC %

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Address

Victory House, Prospect Hill, 6th Floor, Douglas, IMN, IM1 1EQ

Website

https://www.blackseapropertyplc.com

Black Sea Property PLC is a real estate company focused on investments in Bulgaria. It seeks to generate capital gains through development, financing and sale of property in Bulgaria, including the prime areas of Bulgaria's Black Sea coast, the ski resorts and the capital, Sofia. The Board is seeking to create a diverse portfolio of opportunistic and value-added Bulgarian real estate assets, including development land, partially completed construction projects and completed buildings.

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