Property For Industry (NZSE:PFI) ROC % : 3.69% (As of Dec. 2024)

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What is Property For Industry 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 %. Property For Industry's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 3.69%.

As of today (2025-03-25), Property For Industry's WACC % is 7.75%. Property For Industry's ROC % is 3.43% (calculated using TTM income statement data). Property For Industry earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Property For Industry ROC % Historical Data

The historical data trend for Property For Industry'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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Property For Industry ROC % Chart

Property For Industry Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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4.97

4.82

3.85

4.13

8.27

Property For Industry Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															3.48	3.59	4.01	3.12	3.69

Property For Industry ROC % Calculation

Property For Industry's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	84.726 * ( 1 - -113.44% )	/	( (2214.328	+	2159.252)	/ 2 )
=	180.8391744	/	2186.79
=	8.27 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	2217.006	-	12.344	-	( 1.103	-	max(0, 16.611	-	6.945	+	1.103	))
=	2214.328

	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	))
=	2162.787	-	13.727	-	( 1.332	-	max(0, 16.729	-	6.537	+	1.332	))
=	2159.252

Property For Industry's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	87.3 * ( 1 - 6.21% )	/	( (2227.824	+	2208.573)	/ 2 )
=	81.87867	/	2218.1985
=	3.69 %

where

	Invested Capital		(Q: Jun. 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	))
=	2086.137	-	19.787	-	( 1.481	-	max(0, 171.036	-	9.562	+	1.481	))
=	2227.824

	Invested Capital		(Q: Dec. 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	))
=	2116.291	-	20.789	-	( 1.896	-	max(0, 122.056	-	8.985	+	1.896	))
=	2208.573

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

Property For Industry (NZSE:PFI) 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, Property For Industry's WACC % is 7.75%. Property For Industry's ROC % is 3.43% (calculated using TTM income statement data). Property For Industry 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.

Property For Industry ROC % Related Terms

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Property For Industry Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Property For Industry Ltd (NZSE:PFI) » Definitions » ROC %

Comparable Companies

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Address

15 Galway Street, Level 4, Hayman Kronfeld Building, Auckland, NZL, 1010

Website

https://www.propertyforindustry.co.nz

Property For Industry Ltd is a New Zealand-based industrial property investment company. The company's portfolio is predominantly composed of industrial properties. The company's investment properties are solely located in New Zealand, with the majority in Auckland and the remaining in other New Zealand cities. Its tenants encompass large enterprises such as Fisher and Paykel Appliances, Fletcher Building Products, Brambles, and Cottonsoft among others. Rental and management fee income represents nearly all of its operating revenue.