Yuexiu Real Estate Investment Trust (HKSE:00405) ROC % : -6.98% (As of Dec. 2023)

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What is Yuexiu Real Estate Investment Trust 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 %. Yuexiu Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -6.98%.

As of today (2024-12-15), Yuexiu Real Estate Investment Trust's WACC % is 2.13%. Yuexiu Real Estate Investment Trust's ROC % is -3.82% (calculated using TTM income statement data). Yuexiu Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Yuexiu Real Estate Investment Trust ROC % Historical Data

The historical data trend for Yuexiu Real Estate Investment Trust'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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Yuexiu Real Estate Investment Trust ROC % Chart

Yuexiu Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.02

1.95

1.65

3.74

-0.04

Yuexiu Real Estate Investment Trust 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															2.82	0.17	0.93	-6.98	-1.88

Yuexiu Real Estate Investment Trust ROC % Calculation

Yuexiu Real Estate Investment Trust'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 )
=	1186.703 * ( 1 - 101.6% )	/	( (52496.369	+	52981.334)	/ 2 )
=	-18.987248	/	52738.8515
=	-0.04 %

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	))
=	48986.29	-	652.654	-	( 451.102	-	max(0, 5993.56	-	1830.827	+	451.102	))
=	52496.369

	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	))
=	47957.918	-	606.259	-	( 1354.214	-	max(0, 7515.162	-	1885.487	+	1354.214	))
=	52981.334

Yuexiu Real Estate Investment Trust'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	1148.1 * ( 1 - 421.17% )	/	( (52708.155	+	52981.334)	/ 2 )
=	-3687.35277	/	52844.7445
=	-6.98 %

where

	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	))
=	49704.818	-	546.545	-	( 3070.494	-	max(0, 7153.608	-	3603.726	+	3070.494	))
=	52708.155

	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	))
=	47957.918	-	606.259	-	( 1354.214	-	max(0, 7515.162	-	1885.487	+	1354.214	))
=	52981.334

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

Yuexiu Real Estate Investment Trust (HKSE:00405) 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, Yuexiu Real Estate Investment Trust's WACC % is 2.13%. Yuexiu Real Estate Investment Trust's ROC % is -3.82% (calculated using TTM income statement data). Yuexiu Real Estate Investment Trust 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.

Yuexiu Real Estate Investment Trust ROC % Related Terms

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Yuexiu Real Estate Investment Trust Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Yuexiu Real Estate Investment Trust (HKSE:00405) » Definitions » ROC %

Comparable Companies

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YUXXF:USA D3N:Germany

Address

160 Lockhart Road, Flat B, 17th Floor, Yue Xiu Building, Wanchai, HKG

Website

https://www.yuexiureit.com

Yuexiu Real Estate Investment Trust invests in office, retail, and other commercial properties in the People's Republic of China. The company's portfolio consists of properties located in the central business district of Guangzhou and Shanghai. The types of properties include clothing markets, office buildings, retail centers, hotels, and serviced apartments. The company operates in three main segments: Hotel & Serviced apartments, Office rental, and Wholesale & shopping malls. Hotel and serviced apartments offer room rentals and food and beverages. Office rental and wholesale and shopping malls include the revenue from leasing these properties. All of its revenue comes from China.

Executives

Yue Xiu Enterprises (holdings) Limited	2201 Interest of corporation controlled by you
Yuexiu Property Company Limited	2201 Interest of corporation controlled by you
Dragon Yield Holding Limited
Sun Advance Limited	2402 A person making a loan or providing security
Beyond Best Global Limited	2201 Interest of corporation controlled by you
Radiant World Investment Limited	2402 A person making a loan or providing security
Tong Wing Chi	2201 Interest of corporation controlled by you
Victory Success Consulting Limited	2201 Interest of corporation controlled by you
Yuexiu International Investment Limited	2101 Beneficial owner
Guang Zhou Yue Xiu Ji Tuan Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you
Sun Advance Limited	2201 Interest of corporation controlled by you
Golden Harbor Limited	2201 Interest of corporation controlled by you

Yuexiu Real Estate Investment Trust Headlines

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