Bait Ve Gag Real Estate Development (XTAE:BVGG) ROC % : -5.09% (As of Dec. 2023)

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What is Bait Ve Gag Real Estate Development 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 %. Bait Ve Gag Real Estate Development's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -5.09%.

As of today (2024-06-07), Bait Ve Gag Real Estate Development's WACC % is 10.71%. Bait Ve Gag Real Estate Development's ROC % is -2.52% (calculated using TTM income statement data). Bait Ve Gag Real Estate Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bait Ve Gag Real Estate Development ROC % Historical Data

The historical data trend for Bait Ve Gag Real Estate Development'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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Bait Ve Gag Real Estate Development ROC % Chart

Bait Ve Gag Real Estate Development Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

11.37

3.85

-2.45

Bait Ve Gag Real Estate Development Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial			11.74	2.35	7.47	0.23	-5.09

Bait Ve Gag Real Estate Development ROC % Calculation

Bait Ve Gag Real Estate Development'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 )
=	-8.54 * ( 1 - 9.17% )	/	( (315.833	+	318.374)	/ 2 )
=	-7.756882	/	317.1035
=	-2.45 %

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	))
=	421.279	-	28.986	-	( 76.46	-	max(0, 166.462	-	374.406	+	76.46	))
=	315.833

	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	))
=	368.23	-	15.959	-	( 33.897	-	max(0, 114.484	-	268.33	+	33.897	))
=	318.374

Bait Ve Gag Real Estate Development's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-19.206 * ( 1 - 19.71% )	/	( (287.444	+	318.374)	/ 2 )
=	-15.4204974	/	302.909
=	-5.09 %

where

	Invested Capital		(Q: Jun. 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	))
=	400.572	-	17.647	-	( 95.481	-	max(0, 141.862	-	349.17	+	95.481	))
=	287.444

	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	))
=	368.23	-	15.959	-	( 33.897	-	max(0, 114.484	-	268.33	+	33.897	))
=	318.374

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Bait Ve Gag Real Estate Development (XTAE:BVGG) 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, Bait Ve Gag Real Estate Development's WACC % is 10.71%. Bait Ve Gag Real Estate Development's ROC % is -2.52% (calculated using TTM income statement data). Bait Ve Gag Real Estate Development 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.

Bait Ve Gag Real Estate Development ROC % Related Terms

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Bait Ve Gag Real Estate Development (XTAE:BVGG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Bait Ve Gag Real Estate Development Ltd (XTAE:BVGG) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

17A, Abba Hillel street, Ramat Gan, ISR, 6971026

Website

https://www.baitvegag.co.il

Bait Ve Gag Real Estate Development Ltd is engaged in the planning, initiation, and execution of real estate projects comprising mainly urban renewal.

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