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Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario (BSP:ALZR11) ROIC % : 12.28% (As of Jun. 2023)


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What is Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario 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 %. Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 12.28%.

As of today (2024-05-19), Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's WACC % is 5.87%. Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC % is 12.28% (calculated using TTM income statement data). Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario ROIC % Historical Data

The historical data trend for Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario'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.

Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario ROIC % Chart

Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROIC %
Get a 7-Day Free Trial 7.88 9.28 5.23 5.85 12.28

Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario Semi-Annual Data
Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROIC % Get a 7-Day Free Trial 7.88 9.28 5.23 5.85 12.28

Competitive Comparison of Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC %

For the Real Estate Services subindustry, Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario'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.


Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC % distribution charts can be found below:

* The bar in red indicates where Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC % falls into.



Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario ROIC % Calculation

Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

ROIC % (A: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Jun. 2023 ))/ count )
=94.248 * ( 1 - 2.54% )/( (802.209 + 694.012)/ 2 )
=91.8541008/748.1105
=12.28 %

where

Invested Capital(A: 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))
=1238.498 - 7.24 - ( 577.171 - max(0, 53.875 - 591.121+577.171))
=694.012

Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

ROIC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=94.248 * ( 1 - 2.54% )/( (802.209 + 694.012)/ 2 )
=91.8541008/748.1105
=12.28 %

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))
=1238.498 - 7.24 - ( 577.171 - max(0, 53.875 - 591.121+577.171))
=694.012

Note: The Operating Income data used here is one times the annual (Jun. 2023) 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.


Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario  (BSP:ALZR11) 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, Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's WACC % is 5.87%. Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario's ROIC % is 12.28% (calculated using TTM income statement data). Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario 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 %, 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.


Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario ROIC % Related Terms

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Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliario (BSP:ALZR11) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Rua Tabapua No. 1.227-Conj. 202, Itaim Bibi, Sau Paulo, SP, BRA, 04534-003
Alianza Trust Renda Imobiliaria Fundo Investimento Imobiliariois a real estate investment company in Brazil. The company focuses on structured projects, such as Built-To-Suit and Sale and Leaseback. It offers property development for leases in the logistics, residential and office segments. The company is also engaged in an asset management business of premium real estate investments, such as FIIs, private equity real estate vehicles, CMBS and RMBS.

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