PT PP Properti Tbk (ISX:PPRO) ROC % : -0.02% (As of Mar. 2024)

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What is PT PP Properti Tbk 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 %. PT PP Properti Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -0.02%.

As of today (2024-06-05), PT PP Properti Tbk's WACC % is 35.04%. PT PP Properti Tbk's ROC % is -0.22% (calculated using TTM income statement data). PT PP Properti Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT PP Properti Tbk ROC % Historical Data

The historical data trend for PT PP Properti Tbk'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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PT PP Properti Tbk ROC % Chart

PT PP Properti Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.65

2.15

0.24

1.18

-0.03

PT PP Properti Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															0.46	-0.26	-0.14	-0.47	-0.02

PT PP Properti Tbk ROC % Calculation

PT PP Properti Tbk'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 )
=	-3101.363 * ( 1 - -0.35% )	/	( (14854757.31	+	9585678.803)	/ 2 )
=	-3112.2177705	/	12220218.0565
=	-0.03 %

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	))
=	21812999.449	-	5475982.047	-	( 1482260.092	-	max(0, 8913509.462	-	13620003.874	+	1482260.092	))
=	14854757.31

	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	))
=	19693388.489	-	9987733.095	-	( 774115.642	-	max(0, 12477301.73	-	12597278.321	+	774115.642	))
=	9585678.803

PT PP Properti Tbk's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-1828.64 * ( 1 - -0.18% )	/	( (9585678.803	+	11295128.068)	/ 2 )
=	-1831.931552	/	10440403.4355
=	-0.02 %

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	))
=	19693388.489	-	9987733.095	-	( 774115.642	-	max(0, 12477301.73	-	12597278.321	+	774115.642	))
=	9585678.803

	Invested Capital		(Q: Mar. 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	))
=	19201153.155	-	7616396.97	-	( 289628.117	-	max(0, 9865405.567	-	12063064.944	+	289628.117	))
=	11295128.068

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

PT PP Properti Tbk (ISX:PPRO) 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, PT PP Properti Tbk's WACC % is 35.04%. PT PP Properti Tbk's ROC % is -0.22% (calculated using TTM income statement data). PT PP Properti Tbk 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.

PT PP Properti Tbk ROC % Related Terms

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PT PP Properti Tbk (ISX:PPRO) Business Description

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Address

Jalan Letjend. TB. Simatupang No. 57, Plaza PP, 7th Floor, Pasar Rebo, Jakarta Timur, Jakarta, IDN, 13760

Website

https://www.pp-properti.com

PP Properti TBK is an Indonesian property development company that specializes in developing residential, mall/entertainment, and hotel properties. PT PP Persero Tbk is the majority shareholder in PP Properti TBK and is PP Properti TBK's parent company with almost 65% of shares held. The Government of the Republic of Indonesia holds 51% of PT PP Persero TBK; therefore, it is the ultimate owner of PP Properti TBK.

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