BB Fundo Invest Imobiliario Progressivo (BSP:BBFI11B) ROC % : 6.22% (As of Dec. 2023)

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What is BB Fundo Invest Imobiliario Progressivo 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 %. BB Fundo Invest Imobiliario Progressivo's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.22%.

As of today (2024-05-22), BB Fundo Invest Imobiliario Progressivo's WACC % is 7.90%. BB Fundo Invest Imobiliario Progressivo's ROC % is 6.22% (calculated using TTM income statement data). BB Fundo Invest Imobiliario Progressivo earns returns that do not match up to its cost of capital. It will destroy value as it grows.

BB Fundo Invest Imobiliario Progressivo ROC % Historical Data

The historical data trend for BB Fundo Invest Imobiliario Progressivo'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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BB Fundo Invest Imobiliario Progressivo ROC % Chart

BB Fundo Invest Imobiliario Progressivo Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

10.20

11.87

13.16

13.32

6.22

BB Fundo Invest Imobiliario Progressivo Semi-Annual Data
	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	10.20	11.87	13.16	13.32	6.22

BB Fundo Invest Imobiliario Progressivo ROC % Calculation

BB Fundo Invest Imobiliario Progressivo'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 )
=	15.906 * ( 1 - 0% )	/	( (261.846	+	249.236)	/ 2 )
=	15.906	/	255.541
=	6.22 %

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	))
=	289.374	-	3.713	-	( 24.022	-	max(0, 3.713	-	27.528	+	24.022	))
=	261.846

	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	))
=	271.955	-	1.079	-	( 22.715	-	max(0, 1.079	-	22.719	+	22.715	))
=	249.236

BB Fundo Invest Imobiliario Progressivo's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	15.906 * ( 1 - 0% )	/	( (261.846	+	249.236)	/ 2 )
=	15.906	/	255.541
=	6.22 %

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	))
=	289.374	-	3.713	-	( 24.022	-	max(0, 3.713	-	27.528	+	24.022	))
=	261.846

	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	))
=	271.955	-	1.079	-	( 22.715	-	max(0, 1.079	-	22.719	+	22.715	))
=	249.236

Note: The Operating Income data used here is one times the annual (Dec. 2023) data.

BB Fundo Invest Imobiliario Progressivo (BSP:BBFI11B) 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, BB Fundo Invest Imobiliario Progressivo's WACC % is 7.90%. BB Fundo Invest Imobiliario Progressivo's ROC % is 6.22% (calculated using TTM income statement data). BB Fundo Invest Imobiliario Progressivo 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.

BB Fundo Invest Imobiliario Progressivo ROC % Related Terms

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BB Fundo Invest Imobiliario Progressivo (BSP:BBFI11B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » BB Fundo Invest Imobiliario Progressivo (BSP:BBFI11B) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Avenida Paulista, 2300, 11th Floor, Sao Paulo, SP, BRA, 1310300

Website

http://www.fundoimobiliario.com.br

BB Fundo Invest Imobiliario Progressivo is an investment REIT. The firm invests in commercial real estate developments that generate frequent revenue, such as commercial buildings, hospitals, shopping malls, distribution, and logistics centers. It is managed by Caixa Economica Federal. Its assets are leased to the Bank of Brazil.

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