Corio NV (LTS:0LNK) ROC % : -3.32% (As of Dec. 2013)

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What is Corio NV 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 %. Corio NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2013 was -3.32%.

As of today (2024-05-23), Corio NV's WACC % is 0.00%. Corio NV's ROC % is 0.00% (calculated using TTM income statement data). Corio NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Corio NV ROC % Historical Data

The historical data trend for Corio NV'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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Corio NV ROC % Chart

Corio NV Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC %

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-1.04

6.43

4.00

0.20

-3.32

Corio NV Semi-Annual Data
	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
ROC %	Get a 7-Day Free Trial					-1.04	6.43	4.00	0.20	-3.32

Corio NV ROC % Calculation

Corio NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-228.3 * ( 1 - -11.21% )	/	( (7599	+	7674.4)	/ 2 )
=	-253.89243	/	7636.7
=	-3.32 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	7631	-	166.1	-	( 85.2	-	max(0, 358.8	-	224.7	+	85.2	))
=	7599

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	7459.6	-	233.4	-	( 32	-	max(0, 654.8	-	206.6	+	32	))
=	7674.4

Corio NV's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2013 is calculated as:

	ROC % (Q: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2012 )	+	Invested Capital (Q: Dec. 2013 ))	/ count )
=	-228.3 * ( 1 - -11.21% )	/	( (7599	+	7674.4)	/ 2 )
=	-253.89243	/	7636.7
=	-3.32 %

where

	Invested Capital		(Q: Dec. 2012 )
=	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	))
=	7631	-	166.1	-	( 85.2	-	max(0, 358.8	-	224.7	+	85.2	))
=	7599

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	7459.6	-	233.4	-	( 32	-	max(0, 654.8	-	206.6	+	32	))
=	7674.4

Note: The Operating Income data used here is one times the annual (Dec. 2013) data.

Corio NV (LTS:0LNK) 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, Corio NV's WACC % is 0.00%. Corio NV's ROC % is 0.00% (calculated using TTM income statement data). Corio NV 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.

Corio NV ROC % Related Terms

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Corio NV (LTS:0LNK) Business Description

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Corio NV was formed in 2000 by the merger between VIB and WBN. It is a retail property company engaged in developing, redeveloping and managing retail properties such as shops and shopping centers, offices and industrial centers in the Netherlands, France, Italy, Spain, Turkey and Germany. The Company has grown from a Dutch mixed retail fund to a pan-European real estate company with a clear focus on retail. The Company has a presence in the largest consumer markets in continental Europe, management is fully in-sourced and the business has a solid financial position. In the changing retail landscape the Company is now ready to enter the next phase and take advantage of future opportunities and dynamics in the industry. The Company has set up an internal platform, called LaunchLab, focused on helping the Company to innovate and execute the Favorite Meeting Place strategy. The programme aims to discover new strategic insights, as well as support innovative ideas to quickly move into action, boosting revenues from other income streams. The Company has six local organisations: Corio Nederland, Corio France, Corio Italia, Corio EspaÃ±a, Corio TÃ¼rkiye and Corio Deutschland. They are responsible for the daily management of Corio's real estate portfolio. Corio N.V. (the Management Board and its general staff) retains the checks and balances. The general staff reports directly to the Management Board of Corio N.V. The green brick is a reward for the sustainable real estate investor of the year.

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