Impact Development Group (TSXV:IMPT) ROIC % : -79.58% (As of Sep. 2024)

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What is Impact Development Group 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 %. Impact Development Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -79.58%.

As of today (2025-04-05), Impact Development Group's WACC % is 10.03%. Impact Development Group's ROIC % is -44.04% (calculated using TTM income statement data). Impact Development Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Impact Development Group ROIC % Historical Data

The historical data trend for Impact Development Group'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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Impact Development Group ROIC % Chart

Impact Development Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

2.29

-9.52

-15.18

-28.23

-30.44

Impact Development Group Quarterly Data
	Dec19	Dec20	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial						-15.14	-11.61	-82.96	-13.38	-79.58

Competitive Comparison of Impact Development Group's ROIC %

For the Real Estate - Development subindustry, Impact Development Group'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.

Impact Development Group's ROIC % Distribution in the Real Estate Industry

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

* The bar in red indicates where Impact Development Group's ROIC % falls into.

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Impact Development Group ROIC % Calculation

Impact Development Group'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 )
=	-10.375 * ( 1 - 0% )	/	( (36.917	+	31.26)	/ 2 )
=	-10.375	/	34.0885
=	-30.44 %

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	))
=	38.7	-	1.763	-	( 0.02	-	max(0, 12.114	-	37.851	+	0.02	))
=	36.917

	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	))
=	35.704	-	4.347	-	( 0.097	-	max(0, 11.771	-	35.536	+	0.097	))
=	31.26

Impact Development Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-24.192 * ( 1 - 0% )	/	( (33.806	+	26.996)	/ 2 )
=	-24.192	/	30.401
=	-79.58 %

where

	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	))
=	37.104	-	3.143	-	( 0.155	-	max(0, 8.119	-	37.01	+	0.155	))
=	33.806

	Invested Capital		(Q: Sep. 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	))
=	31.284	-	4.274	-	( 0.014	-	max(0, 8.229	-	31.202	+	0.014	))
=	26.996

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Impact Development Group (TSXV:IMPT) 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, Impact Development Group's WACC % is 10.03%. Impact Development Group's ROIC % is -44.04% (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.

Impact Development Group ROIC % Related Terms

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Impact Development Group Business Description

Industry

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Traded in Other Exchanges

N/A

Address

1 Adelaide Street East, Suite 801, Toronto, ON, CAN, M5C 2V9

Website

https://www.ihcpanama.com

Impact Development Group Inc is a Panamanian-based real estate developer that provides affordable housing solutions to Panama's growing middle class supported by a longstanding subsidized government program. The vision of IHC Panama is effectuated by a vertically integrated model that coordinates all services necessary to develop high-quality residential and commercial buildings, including land acquisition, financing, architectural, engineering, off-site manufacturing, general contracting, property management, and administration.

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