PRKWF (Parkway Life Real Estate Investment Trust) ROC % : 0.00% (As of Jun. 2024)

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What is Parkway Life 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 %. Parkway Life Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2024-12-14), Parkway Life Real Estate Investment Trust's WACC % is 6.73%. Parkway Life Real Estate Investment Trust's ROC % is 4.76% (calculated using TTM income statement data). Parkway Life Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Parkway Life Real Estate Investment Trust ROC % Historical Data

The historical data trend for Parkway Life 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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Parkway Life Real Estate Investment Trust ROC % Chart

Parkway Life Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.44

4.14

3.98

3.77

4.85

Parkway Life Real Estate Investment Trust Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Parkway Life Real Estate Investment Trust ROC % Calculation

Parkway Life 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 )
=	90.893 * ( 1 - 7.21% )	/	( (1727.138	+	1753.28)	/ 2 )
=	84.3396147	/	1740.209
=	4.85 %

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	))
=	1732.615	-	10.36	-	( 29.598	-	max(0, 60.046	-	55.163	+	29.598	))
=	1727.138

	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	))
=	1752.221	-	15.942	-	( 21.394	-	max(0, 64.967	-	47.966	+	21.394	))
=	1753.28

Parkway Life Real Estate Investment Trust's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (1753.28	+	1728.272)	/ 2 )
=	0	/	1740.776
=	0.00 %

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	))
=	1752.221	-	15.942	-	( 21.394	-	max(0, 64.967	-	47.966	+	21.394	))
=	1753.28

	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	))
=	1715.998	-	19.502	-	( 42.219	-	max(0, 89.587	-	57.811	+	42.219	))
=	1728.272

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

Parkway Life Real Estate Investment Trust (OTCPK:PRKWF) 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, Parkway Life Real Estate Investment Trust's WACC % is 6.73%. Parkway Life Real Estate Investment Trust's ROC % is 4.76% (calculated using TTM income statement data). Parkway Life 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.

Parkway Life Real Estate Investment Trust ROC % Related Terms

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Parkway Life Real Estate Investment Trust Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Parkway Life Real Estate Investment Trust (OTCPK:PRKWF) » Definitions » ROC %

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Traded in Other Exchanges

C2PU:Singapore 3P51:Germany

Address

9 Raffles Place, Number 26-01 Republic Plaza, Singapore, SGP, 048619

Website

https://plifereit.com

Parkway Life Real Estate Investment Trust is a healthcare facility's real estate investment trust. that operates two segments: Hospitals and medical centers and Nursing homes, The majority of the company's sales are generated by its hospital and medical centers segment, which invests in healthcare real estate assets. It generates the majority of its revenues from Singapore and also has a presence in Japan and Malaysia.

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