View United Real Estate Development Co (SAU:9591) ROIC % : 14.71% (As of Jun. 2024)

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What is View United Real Estate Development Co 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 %. View United Real Estate Development Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 14.71%.

As of today (2025-03-13), View United Real Estate Development Co's WACC % is 9.35%. View United Real Estate Development Co's ROIC % is 32.62% (calculated using TTM income statement data). View United Real Estate Development Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

View United Real Estate Development Co ROIC % Historical Data

The historical data trend for View United Real Estate Development Co'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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View United Real Estate Development Co ROIC % Chart

View United Real Estate Development Co Annual Data

Trend

Dec22

Dec23

ROIC %

30.70

40.94

View United Real Estate Development Co Semi-Annual Data
	Dec22	Jun23	Dec23	Jun24
ROIC %	-	19.38	60.94	14.71

Competitive Comparison of View United Real Estate Development Co's ROIC %

For the Real Estate - Development subindustry, View United Real Estate Development Co'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.

View United Real Estate Development Co's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, View United Real Estate Development Co's ROIC % distribution charts can be found below:

* The bar in red indicates where View United Real Estate Development Co's ROIC % falls into.

View United Real Estate Development Co ROIC % Calculation

View United Real Estate Development Co'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 )
=	19.377 * ( 1 - 6.31% )	/	( (42.96	+	45.73)	/ 2 )
=	18.1543113	/	44.345
=	40.94 %

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	))
=	57.13	-	12.024	-	( 2.146	-	max(0, 20.819	-	39.997	+	2.146	))
=	42.96

	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	))
=	81.645	-	1.971	-	( 33.944	-	max(0, 13.994	-	78.987	+	33.944	))
=	45.73

View United Real Estate Development Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	8.81 * ( 1 - 7.91% )	/	( (45.73	+	64.549)	/ 2 )
=	8.113129	/	55.1395
=	14.71 %

where

	Invested Capital		(Q: 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	))
=	81.645	-	1.971	-	( 33.944	-	max(0, 13.994	-	78.987	+	33.944	))
=	45.73

	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	))
=	111.044	-	12.21	-	( 34.285	-	max(0, 15.854	-	108.549	+	34.285	))
=	64.549

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

View United Real Estate Development Co (SAU:9591) 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, View United Real Estate Development Co's WACC % is 9.35%. View United Real Estate Development Co's ROIC % is 32.62% (calculated using TTM income statement data). View United Real Estate Development Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. View United Real Estate Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

View United Real Estate Development Co ROIC % Related Terms

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View United Real Estate Development Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » View United Real Estate Development Co (SAU:9591) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

3898 Anas Bin Malik Road, Al Yasmeen District 6577, Riyadh, SAU, 13325

Website

https://www.view.sa

View United Real Estate Development Co is a real estate development company relying on high expertise and modern technology in all stages of development and implementation to reach the architectural and construction design. The company's business activities consists of construction of residential buildings, general construction of non-residential buildings such as schools, hospitals, and hotels, purchasing and selling land and properties, off-plan sales, and management and leasing of owned or leased residential and non-residential properties.

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