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Springfield Properties (LSE:SPR) ROIC % : 6.74% (As of May. 2024)


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What is Springfield Properties 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 %. Springfield Properties's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2024 was 6.74%.

As of today (2024-12-13), Springfield Properties's WACC % is 11.07%. Springfield Properties's ROIC % is 5.06% (calculated using TTM income statement data). Springfield Properties earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Springfield Properties ROIC % Historical Data

The historical data trend for Springfield Properties'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.

Springfield Properties ROIC % Chart

Springfield Properties Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.22 8.57 9.38 6.39 5.13

Springfield Properties Semi-Annual Data
May15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 13.15 5.61 6.83 4.04 6.74

Competitive Comparison of Springfield Properties's ROIC %

For the Residential Construction subindustry, Springfield Properties'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.


Springfield Properties's ROIC % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Springfield Properties's ROIC % distribution charts can be found below:

* The bar in red indicates where Springfield Properties's ROIC % falls into.



Springfield Properties ROIC % Calculation

Springfield Properties's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2024 is calculated as:

ROIC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2023 ) + Invested Capital (A: May. 2024 ))/ count )
=17.908 * ( 1 - 21.93% )/( (282.941 + 262.226)/ 2 )
=13.9807756/272.5835
=5.13 %

where

Invested Capital(A: May. 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))
=305.253 - 28.092 - ( 14.935 - max(0, 116.737 - 285.584+14.935))
=262.226

Springfield Properties's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2024 is calculated as:

ROIC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: May. 2024 ))/ count )
=24.568 * ( 1 - 25.19% )/( (283.289 + 262.226)/ 2 )
=18.3793208/272.7575
=6.74 %

where

Invested Capital(Q: May. 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))
=305.253 - 28.092 - ( 14.935 - max(0, 116.737 - 285.584+14.935))
=262.226

Note: The Operating Income data used here is two times the semi-annual (May. 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.


Springfield Properties  (LSE:SPR) 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, Springfield Properties's WACC % is 11.07%. Springfield Properties's ROIC % is 5.06% (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.


Springfield Properties ROIC % Related Terms

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Springfield Properties Business Description

Traded in Other Exchanges
N/A
Address
8 Southfield Drive, Alexander Fleming House, Elgin, Morayshire, GBR, IV30 6GR
Springfield Properties PLC is a housebuilder focused on developing a mix of private and affordable housing in Scotland. The group focuses on sourcing land for private housing in areas with high growth potential and progressing those developments through the planning process. The company has one segment which is Housing building activity in the United Kingdom. It earns revenue from private residential properties, affordable housing, contact housing, land sales, and others.