Reserve Capital REIT (XBUL:RSCL) ROC %: -0.86% (As of Mar. 2019)


What is Reserve Capital REIT ROC %?

Reserve Capital REIT XBUL:RSCL ROC % is -0.86% as of Mar. 2019.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Reserve Capital REIT's annualized return on capital (ROC %) for the quarter that ended in Mar. 2019 was -0.86%.

As of today (2026-07-09), Reserve Capital REIT's WACC % is 0.00%. Reserve Capital REIT's ROC % is 0.00% (calculated using TTM income statement data). Reserve Capital REIT earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Reserve Capital REIT  (XBUL:RSCL) 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, Reserve Capital REIT's WACC % is 0.00%. Reserve Capital REIT's ROC % is 0.00% (calculated using TTM income statement data). Reserve Capital REIT 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.

Reserve Capital REIT ROC % Related Terms

Reserve Capital REIT ROC % Historical Data

* Premium members only.

The historical data trend for Reserve Capital REIT'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.

Reserve Capital REIT ROC % Chart

Reserve Capital REIT Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROC %
Get a 7-Day Free Trial 10.23 1.90 0.00 -1.28 -4.76

Reserve Capital REIT Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Sep18 Dec18 Mar19
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 -4.12 0.00 -15.50 -0.86

Reserve Capital REIT ROC % Calculation

Reserve Capital REIT's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

ROC % (A: Dec. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2017 ) + Invested Capital (A: Dec. 2018 ))/ count )
=-0.036 * ( 1 - 0% )/( (0.779 + 0.735)/ 2 )
=-0.036/0.757
=-4.76 %

where

Invested Capital(A: Dec. 2017 )
=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))
=0.782 - 0 - ( 0.003 - max(0, 0.198 - 0.782+0.003))
=0.779

Invested Capital(A: Dec. 2018 )
=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))
=0.74 - 0 - ( 0.005 - max(0, 0.192 - 0.74+0.005))
=0.735

Reserve Capital REIT's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2019 is calculated as:

ROC % (Q: Mar. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2018 ) + Invested Capital (Q: Mar. 2019 ))/ count )
=-0.004 * ( 1 - 0% )/( (0.735 + 0.191)/ 2 )
=-0.004/0.463
=-0.86 %

where

Invested Capital(Q: Dec. 2018 )
=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))
=0.74 - 0 - ( 0.005 - max(0, 0.192 - 0.74+0.005))
=0.735

Invested Capital(Q: Mar. 2019 )
=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))
=0.738 - 0 - ( 0.731 - max(0, 0.191 - 0.738+0.731))
=0.191

Note: The Operating Income data used here is four times the quarterly (Mar. 2019) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -0.86% mean?
Reserve Capital REIT (XBUL:RSCL) has a ROC % of -0.86% as of Mar. 2019. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reserve Capital REIT and its competitors.
Is Reserve Capital REIT's ROC % too high?
Reserve Capital REIT's current ROC % is -0.86%.
How does Reserve Capital REIT's ROC % compare to RASF and PRLE?
Reserve Capital REIT's ROC % of -0.86% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 744 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reserve Capital REIT and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reserve Capital REIT's current ROC % is -0.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reserve Capital REIT stock overvalued right now?
Reserve Capital REIT (XBUL:RSCL) has a current ROC % of -0.86%. The current ROC % is -0.86%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Reserve Capital REIT (XBUL:RSCL), the current ROC % is -0.86% as of Mar. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Reserve Capital REIT Business Description

Industry Real EstateREITs
Address ap. 6, 2nd floor, ent. A, 139 Vitosha boulevard, Sofia, BGR, 1408
Reserve Capital REIT is engaged in raising funds by issuing securities and investing the cash reserve in receivables, purchase of receivables, and performing other commercial activities directly related to the purchase and/or securitization of receivables.