XIN (Xinyuan Real Estate Co) ROIC % : 1.28% (As of Jun. 2024)

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What is Xinyuan Real Estate 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 %. Xinyuan Real Estate Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 1.28%.

As of today (2024-12-12), Xinyuan Real Estate Co's WACC % is 4.16%. Xinyuan Real Estate Co's ROIC % is 0.17% (calculated using TTM income statement data). Xinyuan Real Estate Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Xinyuan Real Estate Co ROIC % Historical Data

The historical data trend for Xinyuan Real Estate 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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Xinyuan Real Estate Co ROIC % Chart

Xinyuan Real Estate Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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2.00

-1.44

-3.78

-1.25

0.46

Xinyuan Real Estate Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial															-1.03	-1.71	13.65	-0.31	1.28

Competitive Comparison of Xinyuan Real Estate Co's ROIC %

For the Real Estate - Development subindustry, Xinyuan Real Estate 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.

Xinyuan Real Estate Co's ROIC % Distribution in the Real Estate Industry

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

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

Xinyuan Real Estate Co ROIC % Calculation

Xinyuan Real Estate 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 )
=	48.294 * ( 1 - 64.42% )	/	( (4162.727	+	3354.435)	/ 2 )
=	17.1830052	/	3758.581
=	0.46 %

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	))
=	5850.278	-	1591.304	-	( 295.124	-	max(0, 4792.96	-	4889.207	+	295.124	))
=	4162.727

	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	))
=	5333.393	-	1844.292	-	( 134.666	-	max(0, 4146.503	-	4493.212	+	134.666	))
=	3354.435

Xinyuan Real Estate 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 )
=	33.884 * ( 1 - -21.22% )	/	( (3354.435	+	3054.975)	/ 2 )
=	41.0741848	/	3204.705
=	1.28 %

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	))
=	5333.393	-	1844.292	-	( 134.666	-	max(0, 4146.503	-	4493.212	+	134.666	))
=	3354.435

	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	))
=	5226.211	-	1997.597	-	( 173.639	-	max(0, 3992.246	-	4410.648	+	173.639	))
=	3054.975

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

Xinyuan Real Estate Co (NYSE:XIN) 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, Xinyuan Real Estate Co's WACC % is 4.16%. Xinyuan Real Estate Co's ROIC % is 0.17% (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.

Xinyuan Real Estate Co ROIC % Related Terms

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Xinyuan Real Estate Co Business Description

Industry

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Comparable Companies

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3XR:Germany

Address

79 Jianguo Road, 27th Floor, China Central Place, Tower II, Chaoyang District, Beijing, CHN, 100025

Website

http://www.xyre.com

Xinyuan Real Estate Co Ltd operates as a real estate developer and property manager in China. It focuses on developing residential projects, which typically consist of multiple residential buildings that include multi-layer apartment buildings, and others. Its several projects include auxiliary services and amenities such as retail outlets, leisure and health facilities, kindergartens, and schools. It aims to provide comfortable and convenient real estate-related products and services to middle-class consumers.