Town Centre Securities (AQSE:TOWN.GB) ROC % : 2.62% (As of Jun. 2024)

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What is Town Centre Securities 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 %. Town Centre Securities's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 2.62%.

As of today (2025-03-14), Town Centre Securities's WACC % is 6.35%. Town Centre Securities's ROC % is 2.29% (calculated using TTM income statement data). Town Centre Securities earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Town Centre Securities ROC % Historical Data

The historical data trend for Town Centre Securities'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.

* Premium members only.

Town Centre Securities ROC % Chart

Town Centre Securities Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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2.35

1.33

2.09

2.40

2.29

Town Centre Securities Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															1.77	2.58	2.49	2.24	2.62

Town Centre Securities ROC % Calculation

Town Centre Securities's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	8.872 * ( 1 - 24.42% )	/	( (300.026	+	285.635)	/ 2 )
=	6.7054576	/	292.8305
=	2.29 %

where

	Invested Capital		(A: 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	))
=	306.681	-	12.387	-	( 29.756	-	max(0, 38.752	-	33.02	+	29.756	))
=	300.026

	Invested Capital		(A: Jun. 2024 )
=	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	))
=	292.432	-	13.425	-	( 25.329	-	max(0, 35.953	-	29.325	+	25.329	))
=	285.635

Town Centre Securities's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	8.866 * ( 1 - 14.5% )	/	( (292.467	+	285.635)	/ 2 )
=	7.58043	/	289.051
=	2.62 %

where

	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	))
=	298.038	-	11.862	-	( 28.827	-	max(0, 38.894	-	32.603	+	28.827	))
=	292.467

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	292.432	-	13.425	-	( 25.329	-	max(0, 35.953	-	29.325	+	25.329	))
=	285.635

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Town Centre Securities (AQSE:TOWN.GB) 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, Town Centre Securities's WACC % is 6.35%. Town Centre Securities's ROC % is 2.29% (calculated using TTM income statement data). Town Centre Securities 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.

Town Centre Securities ROC % Related Terms

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Town Centre Securities Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Town Centre Securities PLC (AQSE:TOWN.GB) » Definitions » ROC %

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TOWNl:UK TOWN:UK

Address

Town Centre House, The Merrion Centre, Leeds, GBR, LS2 8LY

Website

https://www.tcs-plc.co.uk

Town Centre Securities PLC is a United Kingdom-based company engaged in property investment, development, trading, and the provision of hotel and car parks. The company operates in four business segments comprising property rental, car park operations, hotel operations, and investments. Geographically their operations are performed wholly in the United Kingdom. It serves various sectors such as retail, leisure, office, car parking, distribution, and residential. The company's property portfolio includes Rochdale Retail Park, Marina Residential, Eider House, Brownsfield Mill, Carver's Warehouse, Retail Village, The Arena Quarter, and others. The company derives its revenue from the Property Rental segment.

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