BALDF (Fastighets AB Balder) ROC % : 18.49% (As of Sep. 2024)

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What is Fastighets AB Balder 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 %. Fastighets AB Balder's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 18.49%.

As of today (2024-12-13), Fastighets AB Balder's WACC % is 4.54%. Fastighets AB Balder's ROC % is 2.97% (calculated using TTM income statement data). Fastighets AB Balder earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fastighets AB Balder ROC % Historical Data

The historical data trend for Fastighets AB Balder'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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Fastighets AB Balder ROC % Chart

Fastighets AB Balder Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.63

2.68

2.29

2.08

2.52

Fastighets AB Balder Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															3.21	2.60	5.10	2.66	18.49

Fastighets AB Balder ROC % Calculation

Fastighets AB Balder's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	755.635 * ( 1 - 14% )	/	( (26165.253	+	25325.222)	/ 2 )
=	649.8461	/	25745.2375
=	2.52 %

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	))
=	25416.747	-	141.742	-	( 539.025	-	max(0, 2038.832	-	1148.584	+	539.025	))
=	26165.253

	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	))
=	24737.56	-	112.209	-	( 375.234	-	max(0, 1726.622	-	1026.751	+	375.234	))
=	25325.222

Fastighets AB Balder's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	850.916 * ( 1 - -427.82% )	/	( (24000.572	+	24590.673)	/ 2 )
=	4491.3048312	/	24295.6225
=	18.49 %

where

	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	))
=	24674.645	-	0	-	( 674.073	-	max(0, 0	-	1366.549	+	674.073	))
=	24000.572

	Invested Capital		(Q: Sep. 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	))
=	25465.539	-	0	-	( 874.866	-	max(0, 0	-	1432.789	+	874.866	))
=	24590.673

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Fastighets AB Balder (OTCPK:BALDF) 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, Fastighets AB Balder's WACC % is 4.54%. Fastighets AB Balder's ROC % is 2.97% (calculated using TTM income statement data). Fastighets AB Balder 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.

Fastighets AB Balder ROC % Related Terms

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Fastighets AB Balder Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Fastighets AB Balder (OTCPK:BALDF) » Definitions » ROC %

Traded in Other Exchanges

BALD B:Sweden BALDBs:UK 0H2Z:UK 28F0:Germany

Address

Parkgatan 49, P.O. Box 53121, Gothenburg, SWE, 400 15

Website

https://www.balder.se

Fastighets AB Balder is engaged in acquiring, developing, and managing residential properties and commercial properties based on local presence and creating customer value by meeting the needs of different customer groups for commercial premises and housing in Sweden, Denmark, Finland, Norway, Germany, and the UK. The company's property portfolio contains a wide variety of commercial space, ranging from office, retail, and warehouse space, out of which Residential properties constitute the majority portion of the company's portfolio. The Group's business segments are; Helsinki, which derives key income, Stockholm, Gothenburg, Copenhagen, South, East, and North. The company generates revenue through income earned on the rents of its properties and on the management of its real estate.