ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 1,156.01%.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb (BSP:OUFF11) 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, Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's WACC % is 0.00%. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's ROIC % is 0.00% (calculated using TTM income statement data).
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb 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.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb ROIC % Related Terms
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb ROIC % Historical 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.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb ROIC % Chart
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb Annual Data
Trend
Dec19
Dec20
Dec21
Dec22
Dec23
ROIC %
0.00
-1.29
-0.93
22,058.33
1,156.01
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb Semi-Annual Data
* 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.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb ROIC % vs REITs Industry
Note:
The Operating Income data used here is one times the annual (Dec. 2023) data.
The tax rate is limited to between 0% and 100%.
* 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.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb (BSP:OUFF11) has a ROIC % of 1,156.01% as of Dec. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb and its competitors.
Is Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's ROIC % too high?
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's current ROIC % is 1,156.01%. The REITs industry median ROIC % is 3.74. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's value of 1,156.01% is 30809.4% above this industry median. Overall, Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's ROIC % compare to VICI and WPC?
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's ROIC % of 1,156.01% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's value of 1,156.01% is 30809.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a REITs company?
The median ROIC % among REITs companies is 3.74, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's current ROIC % of 1,156.01% is 30809.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's current ROIC % is 1,156.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb stock overvalued right now?
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb (BSP:OUFF11) has a current ROIC % of 1,156.01%. The current ROIC % is 1,156.01% and 30809.4% above the REITs industry median of 3.74. Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb's overall GF Score™ is 4/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb (BSP:OUFF11), the current ROIC % is 1,156.01% as of Dec. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Fundo DE Investimento Imobiliario Ourinvest Fundo DE Fundos DE Inv Imb Business Description
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