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HBR Realty Empreendimentos Imobiliarios (BSP:HBRE3) ROIC % : 1.65% (As of Dec. 2024)


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What is HBR Realty Empreendimentos Imobiliarios 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 %. HBR Realty Empreendimentos Imobiliarios's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 1.65%.

As of today (2025-03-26), HBR Realty Empreendimentos Imobiliarios's WACC % is 10.17%. HBR Realty Empreendimentos Imobiliarios's ROIC % is 1.53% (calculated using TTM income statement data). HBR Realty Empreendimentos Imobiliarios earns returns that do not match up to its cost of capital. It will destroy value as it grows.


HBR Realty Empreendimentos Imobiliarios ROIC % Historical Data

The historical data trend for HBR Realty Empreendimentos Imobiliarios'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.

HBR Realty Empreendimentos Imobiliarios ROIC % Chart

HBR Realty Empreendimentos Imobiliarios Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
-2.16 1.27 1.84 1.44 1.51

HBR Realty Empreendimentos Imobiliarios Quarterly Data
Jun20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 1.40 1.86 1.75 2.21 1.65

Competitive Comparison of HBR Realty Empreendimentos Imobiliarios's ROIC %

For the Real Estate Services subindustry, HBR Realty Empreendimentos Imobiliarios'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.


HBR Realty Empreendimentos Imobiliarios's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, HBR Realty Empreendimentos Imobiliarios's ROIC % distribution charts can be found below:

* The bar in red indicates where HBR Realty Empreendimentos Imobiliarios's ROIC % falls into.


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HBR Realty Empreendimentos Imobiliarios ROIC % Calculation

HBR Realty Empreendimentos Imobiliarios's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=77.841 * ( 1 - 11.02% )/( (4328.184 + 4818.187)/ 2 )
=69.2629218/4573.1855
=1.51 %

where

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))
=4689.03 - 176.132 - ( 188.582 - max(0, 284.631 - 469.345+188.582))
=4328.184

Invested Capital(A: Dec. 2024 )
=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))
=5090.774 - 120.022 - ( 152.565 - max(0, 295.188 - 483.112+152.565))
=4818.187

HBR Realty Empreendimentos Imobiliarios's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=82.376 * ( 1 - 6.44% )/( (4539.063 + 4818.187)/ 2 )
=77.0709856/4678.625
=1.65 %

where

Invested Capital(Q: Sep. 2024 )
=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))
=4832.493 - 155.457 - ( 137.973 - max(0, 318.733 - 480.646+137.973))
=4539.063

Invested Capital(Q: Dec. 2024 )
=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))
=5090.774 - 120.022 - ( 152.565 - max(0, 295.188 - 483.112+152.565))
=4818.187

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


HBR Realty Empreendimentos Imobiliarios  (BSP:HBRE3) 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, HBR Realty Empreendimentos Imobiliarios's WACC % is 10.17%. HBR Realty Empreendimentos Imobiliarios's ROIC % is 1.53% (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.


HBR Realty Empreendimentos Imobiliarios ROIC % Related Terms

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HBR Realty Empreendimentos Imobiliarios Business Description

Traded in Other Exchanges
N/A
Address
Av. Vereador Narciso Yague Guimaraes, 1.145, 2nd Floor, Jardim Arenia, Mogi das Cruzes, SP, BRA, CEP 08710-500
HBR Realty Empreendimentos Imobiliarios SA operates in the real estate development and management division. The company's business is focused on urban properties, distributed over four main platforms that house the developed and developing asset classes. These platforms are ComVem, HBR3A, HBR Malls, and HBR Opportunities. ComVem platform is dedicated towards the development and administration of convenience centers; the HBR 3A platform is dedicated to the development and management of corporate buildings; the HBR Malls platform is dedicated to the acquisition, development, and management of shopping centers and HBR Opportunities platform brings together assets of various classes, such as built to suits, development, and management of hotels, parking lots, among others.

HBR Realty Empreendimentos Imobiliarios Headlines

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