Aliansce Sonae Shopping Centers (Aliansce Sonae Shopping Centers) ROC % : 2.93% (As of Mar. 2024)

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What is Aliansce Sonae Shopping Centers 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 %. Aliansce Sonae Shopping Centers's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 2.93%.

As of today (2024-05-16), Aliansce Sonae Shopping Centers's WACC % is 12.16%. Aliansce Sonae Shopping Centers's ROC % is 5.48% (calculated using TTM income statement data). Aliansce Sonae Shopping Centers earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aliansce Sonae Shopping Centers ROC % Historical Data

The historical data trend for Aliansce Sonae Shopping Centers'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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Aliansce Sonae Shopping Centers ROC % Chart

Aliansce Sonae Shopping Centers Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.14

1.84

4.08

5.28

5.18

Aliansce Sonae Shopping Centers 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															3.81	3.45	3.89	21.35	2.93

Aliansce Sonae Shopping Centers ROC % Calculation

Aliansce Sonae Shopping Centers'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 )
=	252.258 * ( 1 - 28.82% )	/	( (1889.619	+	5049.521)	/ 2 )
=	179.5572444	/	3469.57
=	5.18 %

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	))
=	2342.091	-	28.664	-	( 488.451	-	max(0, 193.653	-	617.461	+	488.451	))
=	1889.619

	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	))
=	5644.944	-	251.127	-	( 435.371	-	max(0, 436.209	-	780.505	+	435.371	))
=	5049.521

Aliansce Sonae Shopping Centers'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 )
=	205.42 * ( 1 - 27.74% )	/	( (5049.521	+	5072.19)	/ 2 )
=	148.436492	/	5060.8555
=	2.93 %

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	))
=	5644.944	-	251.127	-	( 435.371	-	max(0, 436.209	-	780.505	+	435.371	))
=	5049.521

	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	))
=	5477.487	-	240.394	-	( 482.581	-	max(0, 568.038	-	732.941	+	482.581	))
=	5072.19

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

Aliansce Sonae Shopping Centers (OTCPK:SORRF) 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, Aliansce Sonae Shopping Centers's WACC % is 12.16%. Aliansce Sonae Shopping Centers's ROC % is 5.48% (calculated using TTM income statement data). Aliansce Sonae Shopping Centers 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.

Aliansce Sonae Shopping Centers ROC % Related Terms

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Aliansce Sonae Shopping Centers (Aliansce Sonae Shopping Centers) Business Description

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ALOS3:Brazil

Address

Rua Dias Ferreira, 190/3rd Floor, Leblon, Rio de Janeiro, RJ, BRA

Website

https://www.alianscesonae.com.br

ALLOS SA Formerly Aliansce Sonae Shopping Centers SA is a full-service company engaged in investing, directly or indirectly in commercial centers, shopping malls, and similar ventures, and in other companies as a partner or stockholder, as well as rendering commercial advisory services, and management of shopping malls and condominiums. It has three operating segments; Rent refers to the operating leases of the shopping malls that include rent, assignment of the right of use, and transfer fee revenue, Parking lot refers to the operation of the parking lot of the shopping mall, and Rendering of services involves the trading, rental, and condominium management and development/planning services carried out in shopping malls owned by the Company and third parties.