GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » BWP Trust (ASX:BWP) » Definitions » ROIC %

BWP Trust (ASX:BWP) ROIC % : 4.67% (As of Jun. 2024)


View and export this data going back to 1998. Start your Free Trial

What is BWP Trust ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. BWP Trust's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 4.67%.

As of today (2024-12-14), BWP Trust's WACC % is 7.80%. BWP Trust's ROIC % is 4.57% (calculated using TTM income statement data). BWP Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.


BWP Trust ROIC % Historical Data

The historical data trend for BWP Trust's ROIC % 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.

* Premium members only.

BWP Trust ROIC % Chart

BWP Trust Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.47 4.94 4.48 4.38 4.45

BWP Trust Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROIC % 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 4.32 4.25 4.30 4.58 4.67

Competitive Comparison of BWP Trust's ROIC %

For the REIT - Industrial subindustry, BWP Trust's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BWP Trust's ROIC % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, BWP Trust's ROIC % distribution charts can be found below:

* The bar in red indicates where BWP Trust's ROIC % falls into.



BWP Trust ROIC % Calculation

BWP Trust's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROIC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=143.955 * ( 1 - 0% )/( (2936.94 + 3534.865)/ 2 )
=143.955/3235.9025
=4.45 %

where

BWP Trust's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=152.292 * ( 1 - 0% )/( (2984.977 + 3534.865)/ 2 )
=152.292/3259.921
=4.67 %

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))
=2997.742 - 25.319 - ( 18.876 - max(0, 83.262 - 70.708+18.876))
=2984.977

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

* 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.


BWP Trust  (ASX:BWP) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, BWP Trust's WACC % is 7.80%. BWP Trust's ROIC % is 4.57% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


BWP Trust ROIC % Related Terms

Thank you for viewing the detailed overview of BWP Trust's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


BWP Trust Business Description

Traded in Other Exchanges
N/A
Address
123 St Georges Terrace, Level 14, Brookfield Place Tower 2, Perth, WA, AUS, 6000
BWP Trust is an Australian REIT focused on owing warehouse/bulky goods retailing properties with relatively large sites and high visibility and access to arterial roads. The portfolio of properties it owns are diversified across most Australian states and are on long-term leases to Australia's dominant home improvement chain: Bunnings Group. Bunnings is a wholly owned subsidiary of Wesfarmers, a top 10 ASX-listed company by market capitalization. BWP Trust is also externally managed by a wholly owned subsidiary of Wesfarmers, and Wesfarmers owns 23% of the units in the trust.