Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11) ROC % : 2.91% (As of Dec. 2023)

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What is Hedge Officeome Fundo De Investimento Imobiliario 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 %. Hedge Officeome Fundo De Investimento Imobiliario's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 2.91%.

As of today (2024-12-11), Hedge Officeome Fundo De Investimento Imobiliario's WACC % is 11.59%. Hedge Officeome Fundo De Investimento Imobiliario's ROC % is 2.91% (calculated using TTM income statement data). Hedge Officeome Fundo De Investimento Imobiliario earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hedge Officeome Fundo De Investimento Imobiliario ROC % Historical Data

The historical data trend for Hedge Officeome Fundo De Investimento Imobiliario'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.

Hedge Officeome Fundo De Investimento Imobiliario ROC % Chart

Hedge Officeome Fundo De Investimento Imobiliario Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

1.11

5.16

4.79

3.76

2.91

Hedge Officeome Fundo De Investimento Imobiliario Semi-Annual Data
	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	1.11	5.16	4.79	3.76	2.91

Hedge Officeome Fundo De Investimento Imobiliario ROC % Calculation

Hedge Officeome Fundo De Investimento Imobiliario'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 )
=	10.339 * ( 1 - 0% )	/	( (390.784	+	319.465)	/ 2 )
=	10.339	/	355.1245
=	2.91 %

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	))
=	399.519	-	2.933	-	( 5.959	-	max(0, 2.933	-	8.735	+	5.959	))
=	390.784

	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	))
=	322.744	-	1.077	-	( 2.202	-	max(0, 1.077	-	3.972	+	2.202	))
=	319.465

Hedge Officeome Fundo De Investimento Imobiliario'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 )
=	10.339 * ( 1 - 0% )	/	( (390.784	+	319.465)	/ 2 )
=	10.339	/	355.1245
=	2.91 %

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	))
=	399.519	-	2.933	-	( 5.959	-	max(0, 2.933	-	8.735	+	5.959	))
=	390.784

	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	))
=	322.744	-	1.077	-	( 2.202	-	max(0, 1.077	-	3.972	+	2.202	))
=	319.465

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

Hedge Officeome Fundo De Investimento Imobiliario (BSP:HOFC11) 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, Hedge Officeome Fundo De Investimento Imobiliario's WACC % is 11.59%. Hedge Officeome Fundo De Investimento Imobiliario's ROC % is 2.91% (calculated using TTM income statement data). Hedge Officeome Fundo De Investimento Imobiliario 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.

Hedge Officeome Fundo De Investimento Imobiliario ROC % Related Terms

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Hedge Officeome Fundo De Investimento Imobiliario Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Hedge Office Income Fundo De Investimento Imobiliario (BSP:HOFC11) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Avenida Brigadeiro Faria Lima, 3600, 11th Floor, cj 112 - Itaim Bibi, Sao Paulo, SP, BRA, 04538-132

Website

https://www.hedgeinvest.com.br

Hedge Office Income Fundo De Investimento Imobiliario operates as a corporate Real Estate Fund .The objective of the Fund is to obtain income and capital gains to be obtained through the exploration of a or more real estate projects, aimed at the office segment including slabs and corporate buildings being certain that in such office developments there may be certain properties intended for commercial, retail activities.

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