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Pollux Properties (SGX:5AE) ROIC % : 7.19% (As of Jun. 2024)


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What is Pollux 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 %. Pollux Properties's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 7.19%.

As of today (2024-12-12), Pollux Properties's WACC % is 0.64%. Pollux Properties's ROIC % is -1.49% (calculated using TTM income statement data). Pollux Properties earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Pollux Properties ROIC % Historical Data

The historical data trend for Pollux 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.

Pollux Properties ROIC % Chart

Pollux Properties Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.21 1.59 0.92 1.66 1.88

Pollux Properties Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 1.56 1.74 2.14 -0.26 7.19

Competitive Comparison of Pollux Properties's ROIC %

For the Real Estate Services subindustry, Pollux 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.


Pollux Properties's ROIC % Distribution in the Real Estate Industry

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

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



Pollux Properties ROIC % Calculation

Pollux Properties'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 )
=9.607 * ( 1 - 23% )/( (395.725 + 389.657)/ 2 )
=7.39739/392.691
=1.88 %

where

Pollux Properties'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 )
=6.928 * ( 1 - -297.62% )/( (389.657 + 377.019)/ 2 )
=27.5471136/383.338
=7.19 %

where

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


Pollux Properties  (SGX:5AE) 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, Pollux Properties's WACC % is 0.64%. Pollux Properties's ROIC % is -1.49% (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.


Pollux Properties ROIC % Related Terms

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Pollux Properties Business Description

Traded in Other Exchanges
N/A
Address
554 Havelock Road, Singapore, SGP, 169639
Pollux Properties Ltd is a property developer focusing on the development of residential and commercial properties. The company is engaged in the business of developing premium real estate projects. The company operates through five segments: The Property Development segment, which is involved in the acquisition and development of properties for sale; The Property Investment segment, which is involved in renting properties and operating a serviced apartment; The Corporate segment, which is involved in corporate services and investments. The Fund Management segment is involved in providing management and advisory services and Hotel Operations. The company generates the majority of its revenue from the Property Investment segment.

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