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GNL (Global Net Lease) ROIC % : 2.88% (As of Sep. 2024)


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What is Global Net Lease 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 %. Global Net Lease's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 2.88%.

As of today (2024-12-12), Global Net Lease's WACC % is 7.88%. Global Net Lease's ROIC % is 2.66% (calculated using TTM income statement data). Global Net Lease earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Global Net Lease ROIC % Historical Data

The historical data trend for Global Net Lease'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.

Global Net Lease ROIC % Chart

Global Net Lease 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 2.58 1.83 1.51 1.45 2.12

Global Net Lease Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.65 2.51 2.70 2.59 2.88

Competitive Comparison of Global Net Lease's ROIC %

For the REIT - Diversified subindustry, Global Net Lease'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.


Global Net Lease's ROIC % Distribution in the REITs Industry

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

* The bar in red indicates where Global Net Lease's ROIC % falls into.



Global Net Lease ROIC % Calculation

Global Net Lease'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 )
=139.193 * ( 1 - -7.33% )/( (4482.304 + 9639.531)/ 2 )
=149.3958469/7060.9175
=2.12 %

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))
=3961.826 - 29.261 - ( 103.335 - max(0, 727.685 - 177.946+103.335))
=4482.304

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))
=8098.977 - 110.187 - ( 121.566 - max(0, 1900.582 - 249.841+121.566))
=9639.531

Global Net Lease's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=250.848 * ( 1 - -2.09% )/( (9124.848 + 8675.547)/ 2 )
=256.0907232/8900.1975
=2.88 %

where

Invested Capital(Q: Jun. 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))
=7612.713 - 97.334 - ( 122.181 - max(0, 1878.659 - 269.19+122.181))
=9124.848

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))
=7335.87 - 102.483 - ( 127.249 - max(0, 1731.24 - 289.08+127.249))
=8675.547

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


Global Net Lease  (NYSE:GNL) 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, Global Net Lease's WACC % is 7.88%. Global Net Lease's ROIC % is 2.66% (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.


Global Net Lease ROIC % Related Terms

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Global Net Lease Business Description

Traded in Other Exchanges
Address
650 Fifth Avenue, 30th Floor, New York, NY, USA, 10019
Global Net Lease Inc is a real estate investment trust that manages a globally diversified portfolio of commercial real estate properties. The company is engaged in the ownership, management, operating, lease, acquisition, investment, and sale of the portfolio assets. Its segments include Industrial & Distribution; Multi-Tenant Retail; Single-Tenant Retail ; and office. The company derives maximum revenue from industrial and distribution segment. The company geographically operates in Unites States, United Kingdom, Canada and Europe.
Executives
Nicholas S Schorsch 10 percent owner
Jesse Charles Galloway officer: See Remarks 650 FIFTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Ar Global Investments, Llc 10 percent owner 222 BELLEVUE AVENUE, NEWPORT RI 02840
Bellevue Capital Partners, Llc 10 percent owner 222 BELLEVUE AVENUE, NEWPORT RI 02840
Lisa Kabnick director 405 PARK AVENUE, NEW YORK NY 10022
Leslie D Michelson director PRIVATE HEALTH MANAGEMENT, 9200 SUNSET BLVD, SUITE 110, LOS ANGELES CA 90069
Stanley R Perla director C/O LEXINGTON CORPORATE PROPERTIES TRUST, 355 LEXINGOTN AVE 14TH FL, NEW YORK NY 10017
Christopher J. Masterson officer: CFO, Secretary and Treasurer 405 PARK AVE, NEW YORK NY 10022
James Larry Nelson director, officer: CEO and President 2747 PARADISE ROAD, PH2804, LAS VEGAS NV 89109
Weil Edward M Jr. director C/O AMERICAN REALTY CAPITAL 405 PARK AVE, NEW YORK NY 10022
Edward G Rendell director 405 PARK AVENUE, 15TH FLOOR, NEW YORK NY 10022
Abby M. Wenzel director C/O AMERICAN REALTY CAPITAL PROPERTIES, 405 PARK AVENUE, NEW YORK NY 10022
Sue Perrotty Portia director 405 PARK AVENUE, NEW YORK NY 10022
Lee M Elman director 405 PARK AVENUE, NEW YORK NY 10022
M. Therese Antone director 650 FIFTH AVENUE, 30TH FLOOR, NEW YORK NY 10019