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Hubilu Venture (Hubilu Venture) ROIC % : -0.67% (As of Dec. 2023)


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What is Hubilu Venture 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 %. Hubilu Venture's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.67%.

As of today (2024-05-05), Hubilu Venture's WACC % is 6.76%. Hubilu Venture's ROIC % is 4.14% (calculated using TTM income statement data). Hubilu Venture earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Hubilu Venture ROIC % Historical Data

The historical data trend for Hubilu Venture'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.

Hubilu Venture ROIC % Chart

Hubilu Venture Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only -7.92 3.05 5.39 4.86 4.11

Hubilu Venture Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.48 5.07 5.36 6.83 -0.67

Competitive Comparison of Hubilu Venture's ROIC %

For the Real Estate Services subindustry, Hubilu Venture'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.


Hubilu Venture's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Hubilu Venture's ROIC % distribution charts can be found below:

* The bar in red indicates where Hubilu Venture's ROIC % falls into.



Hubilu Venture ROIC % Calculation

Hubilu Venture'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 )
=0.744 * ( 1 - 0% )/( (18.638 + 17.579)/ 2 )
=0.744/18.1085
=4.11 %

where

Hubilu Venture's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-0.12 * ( 1 - 0% )/( (18.05 + 17.579)/ 2 )
=-0.12/17.8145
=-0.67 %

where

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


Hubilu Venture  (OTCPK:HBUV) 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, Hubilu Venture's WACC % is 6.76%. Hubilu Venture's ROIC % is 4.14% (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.


Hubilu Venture ROIC % Related Terms

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Hubilu Venture (Hubilu Venture) Business Description

Traded in Other Exchanges
N/A
Address
205 South Beverly Drive, Suite 205, Beverly Hills, CA, USA, 90212
Hubilu Venture Corp provides real estate consulting services to its clients in the United States. The company assists real estate investment professionals, as well as established companies, with advisory and consulting services directed at providing research, analysis, and acquisition opportunities. The company generates revenue from rental income. The services are focused on the research and analysis of real estate properties and advising clients on the best use of their real estate assets.
Executives
David Behrend director, 10 percent owner, officer: CEO 9777 WILSHIRE BLVD, SUITE 804, BEVERLY HILLS CA 90212
Maurice Simone officer: Secretary P.O.BOX 5374, BEVERLY HILLS CA 90209
Jacaranda Investments, Inc. 10 percent owner 205 S. BEVERLY DRIVE, SUITE 205, BEVERLY HILLS CA 90212

Hubilu Venture (Hubilu Venture) Headlines

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