Land Securities Group (Land Securities Group) ROC % : 4.14% (As of Sep. 2023)

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What is Land Securities Group 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 %. Land Securities Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 4.14%.

As of today (2024-05-12), Land Securities Group's WACC % is 10.42%. Land Securities Group's ROC % is 3.99% (calculated using TTM income statement data). Land Securities Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Land Securities Group ROC % Historical Data

The historical data trend for Land Securities Group'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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Land Securities Group ROC % Chart

Land Securities Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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3.16

3.39

3.48

3.09

3.44

Land Securities Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															3.25	3.21	3.16	4.06	4.14

Land Securities Group ROC % Calculation

Land Securities Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	525.485 * ( 1 - 0% )	/	( (17127.8	+	13381.068)	/ 2 )
=	525.485	/	15254.434
=	3.44 %

where

	Invested Capital		(A: Mar. 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	))
=	16989.46	-	130.435	-	( 192.358	-	max(0, 1148.88	-	880.105	+	192.358	))
=	17127.8

	Invested Capital		(A: Mar. 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	))
=	13308.252	-	64.32	-	( 50.971	-	max(0, 782.767	-	645.631	+	50.971	))
=	13381.068

Land Securities Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	564.356 * ( 1 - 0% )	/	( (13381.068	+	13873.762)	/ 2 )
=	564.356	/	13627.415
=	4.14 %

where

	Invested Capital		(Q: Mar. 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	))
=	13308.252	-	64.32	-	( 50.971	-	max(0, 782.767	-	645.631	+	50.971	))
=	13381.068

	Invested Capital		(Q: Sep. 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	))
=	13496.287	-	402.228	-	( 99.01	-	max(0, 1518.564	-	738.861	+	99.01	))
=	13873.762

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

Land Securities Group (OTCPK:LDSCY) 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, Land Securities Group's WACC % is 10.42%. Land Securities Group's ROC % is 3.99% (calculated using TTM income statement data). Land Securities Group 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.

Land Securities Group ROC % Related Terms

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Land Securities Group (Land Securities Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Land Securities Group PLC (OTCPK:LDSCY) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

LSGOF:USA LANDl:UK LAND:UK LSU2:Germany

Address

100 Victoria Street, London, GBR, SW1E 5JL

Website

https://www.landsec.com

Land Securities Group PLC is a real estate investment trust engaged in buying, selling, developing, and managing commercial property in the United Kingdom. The company's real estate portfolio is made up of the office, retail, and leisure spaces in the London and Greater London regions. Office locations in London's West End, offices in the City of London, and shopping centers comprise the majority of the value of Land Securities' total assets. The company derives nearly all of its revenue in the form of rental income from medium- to long-term leases with tenants. Land Securities' overall net rental income is fairly evenly split between revenue from its London office properties and its retail properties in Greater London.

Land Securities Group (Land Securities Group) Headlines

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