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Agat Ejendomme AS (OCSE:AGAT) ROIC % : -0.25% (As of Jan. 2025)


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What is Agat Ejendomme AS 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 %. Agat Ejendomme AS's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2025 was -0.25%.

As of today (2025-03-31), Agat Ejendomme AS's WACC % is 2.82%. Agat Ejendomme AS's ROIC % is -1.19% (calculated using TTM income statement data). Agat Ejendomme AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Agat Ejendomme AS ROIC % Historical Data

The historical data trend for Agat Ejendomme AS'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.

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Agat Ejendomme AS ROIC % Chart

Agat Ejendomme AS Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.47 -1.21 -5.02 -3.38 -2.28

Agat Ejendomme AS Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 2.96 2.37 -12.46 1.72 -0.25

Competitive Comparison of Agat Ejendomme AS's ROIC %

For the Real Estate Services subindustry, Agat Ejendomme AS'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.


Agat Ejendomme AS's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Agat Ejendomme AS's ROIC % distribution charts can be found below:

* The bar in red indicates where Agat Ejendomme AS's ROIC % falls into.


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Agat Ejendomme AS ROIC % Calculation

Agat Ejendomme AS's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2025 is calculated as:

ROIC % (A: Jan. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2024 ) + Invested Capital (A: Jan. 2025 ))/ count )
=-16.5 * ( 1 - -6.93% )/( (807.5 + 738.3)/ 2 )
=-17.64345/772.9
=-2.28 %

where

Agat Ejendomme AS's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2025 is calculated as:

ROIC % (Q: Jan. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2024 ) + Invested Capital (Q: Jan. 2025 ))/ count )
=-0.8 * ( 1 - -132.26% )/( (744.2 + 738.3)/ 2 )
=-1.85808/741.25
=-0.25 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2025) 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.


Agat Ejendomme AS  (OCSE:AGAT) 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, Agat Ejendomme AS's WACC % is 2.82%. Agat Ejendomme AS's ROIC % is -1.19% (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.


Agat Ejendomme AS ROIC % Related Terms

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Agat Ejendomme AS Business Description

Traded in Other Exchanges
N/A
Address
Vestre Havnepromenade 7, 3rd Floor, Aalborg, DNK, 9000
Agat Ejendomme AS develops, builds and invests in properties that create value to the people who live, work and do their shopping in these properties. The properties developed by the company are either included in the company's property portfolio or sold to end-users or investors. The company's strategic focus is on the development of a diversified property portfolio in Denmark and on property development activities in Denmark. In terms of segments, the company is engaged in three business areas such as Real estate portfolio, Development activities, and Residual activities.

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