GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Clipper Realty Inc (NYSE:CLPR) » Definitions » ROIC %

Clipper Realty (Clipper Realty) ROIC % : 2.98% (As of Mar. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Clipper Realty 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 %. Clipper Realty's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 2.98%.

As of today (2024-07-17), Clipper Realty's WACC % is 4.24%. Clipper Realty's ROIC % is 2.96% (calculated using TTM income statement data). Clipper Realty earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Clipper Realty ROIC % Historical Data

The historical data trend for Clipper Realty'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.

Clipper Realty ROIC % Chart

Clipper Realty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.10 2.80 2.34 2.37 2.79

Clipper Realty Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 2.31 2.80 3.07 2.99 2.98

Competitive Comparison of Clipper Realty's ROIC %

For the REIT - Residential subindustry, Clipper Realty'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.


Clipper Realty's ROIC % Distribution in the REITs Industry

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

* The bar in red indicates where Clipper Realty's ROIC % falls into.



Clipper Realty ROIC % Calculation

Clipper Realty's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=33.527 * ( 1 - 0% )/( (1194.385 + 1206.173)/ 2 )
=33.527/1200.279
=2.79 %

where

Invested Capital(A: Dec. 2022 )
=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))
=1229.631 - 17.094 - ( 18.152 - max(0, 17.094 - 49.325+18.152))
=1194.385

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

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=36.288 * ( 1 - 0% )/( (1206.173 + 1226.482)/ 2 )
=36.288/1216.3275
=2.98 %

where

Invested Capital(Q: Mar. 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))
=1263.943 - 15.579 - ( 21.882 - max(0, 15.579 - 53.414+21.882))
=1226.482

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


Clipper Realty  (NYSE:CLPR) 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, Clipper Realty's WACC % is 4.24%. Clipper Realty's ROIC % is 2.96% (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.


Clipper Realty ROIC % Related Terms

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


Clipper Realty (Clipper Realty) Business Description

Traded in Other Exchanges
N/A
Address
4611 12th Avenue, Suite 1L, Brooklyn, NY, USA, 11219
Clipper Realty Inc is a self-administered and self-managed real estate company. It acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. It has classified its reporting segments into commercial and residential rental properties. Clipper derives its revenue mostly from a Residential segment.
Executives
Howard M Lorber director 4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Harmon Spolan director OOZEN O CONNOR, 1900 MARKET ST 4TH FL, PHILADELPHIA PA 19103
Sam Levinson director, 10 percent owner 9190 PRIORITY WAY WEST DRIVE, SUITE 300, INDIANAPOLIS IN 46240
David Bistricer director, 10 percent owner, officer: Co-Chairman and CEO PO BOX 407, BROOKLIN NY 11219
Michael Charles Frenz officer: Chief Financial Officer C/O CLIPPER REALTY INC, 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Roberto Angelo Verrone director 200 HIGHLAND AVENUE, SHORT HILLS NJ 07078
Robert Jay Ivanhoe director GREENBERG TRAURIG, LLP, 200 PARK AVENUE, NEW YORK NY 10166
Richard N Burger director P.O. BOX 28543, SCOTTSDALE AZ 85255
Lawrence E Kreider officer: Chief Financial Officer 600 GRANT STREET, SUITE 900, DENVER CO 80203
Jacob Bistricer officer: Chief Operating Officer 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Jacob Schwimmer officer: Chief PM Offcier 1738 47TH STREET, BROOKLYN NY 11204

Clipper Realty (Clipper Realty) Headlines

From GuruFocus

Charlestowne Hotels Inks Monumental Deal with The Thrash Group

By Business Wire Business Wire 06-01-2020

Clipper Realty Inc. to Report Second Quarter 2020 Financial Results

By Business Wire Business Wire 08-04-2020

Clipper Realty Inc. Announces Tax Information For 2021 Distributions

By Business Wire Business Wire 03-02-2022

Clipper Realty Inc. to Report Second Quarter 2022 Financial Results

By Business Wire Business Wire 07-21-2022

Clipper Realty Inc. Announces Tax Information For 2022 Distributions

By Business Wire Business Wire 02-28-2023

Clipper Realty Inc. to Report First Quarter 2021 Financial Results

By Business Wire Business Wire 05-04-2021

Clipper Realty Inc. Announces 2020 Distribution Income Tax Treatment

By Business Wire Business Wire 03-04-2021

Clipper Realty Inc. to Report Second Quarter 2021 Financial Results

By Business Wire Business Wire 08-04-2021

Clipper Realty Inc. to Report Third Quarter 2020 Financial Results

By Business Wire Business Wire 11-03-2020