Grounds Real Estate Development AG (FRA:AMM) ROCE % : -15.95% (As of Jun. 2024)

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What is Grounds Real Estate Development AG ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Grounds Real Estate Development AG's annualized ROCE % for the quarter that ended in Jun. 2024 was -15.95%.

Grounds Real Estate Development AG ROCE % Historical Data

The historical data trend for Grounds Real Estate Development AG's ROCE % 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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Grounds Real Estate Development AG ROCE % Chart

Grounds Real Estate Development AG Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.95

21.39

16.44

5.25

-7.47

Grounds Real Estate Development AG Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial														8.89	2.42	0.92	-16.23	-15.95

Grounds Real Estate Development AG ROCE % Calculation

Grounds Real Estate Development AG's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-4.661	/	( ( (138.279 - 54.793)	+	(147.816 - 106.463) )	/ 2 )
	=	-4.661	/	( (83.486	+	41.353)	/ 2 )
	=	-4.661	/	62.4195
	=	-7.47 %

Grounds Real Estate Development AG's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	-8.472	/	( ( (147.816 - 106.463)	+	(139.486 - 74.627) )	/ 2 )
	=	-8.472	/	( ( 41.353	+	64.859 )	/ 2 )
	=	-8.472	/	53.106
	=	-15.95 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

Grounds Real Estate Development AG (FRA:AMM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Grounds Real Estate Development AG Business Description

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AMM:Germany

Address

Charlottenstrasse 79-80, Berlin, BB, DEU, 10117

Website

https://www.thegroundsag.com

Grounds Real Estate Development AG carries out housing projects in German metropolitan regions and urban areas. Its business activities cover three core areas such as the company is planning to establish its property portfolio for long-term rental income, which is referred to as the portfolio management business. They also aim to develop the existing properties and sell them as part-ownership, known as the privatization business. Additionally, they plan to construct new housing and sell it to institutional investors, capital investors, and owner-occupiers. This is referred to as the project development business. The group's primary sources of income are the construction work on project developments, privatization income and rental income from existing properties.