Sunway Real Estate Investment Trust (XKLS:5176) ROIC % : 4.47% (As of Mar. 2024)

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What is Sunway Real Estate Investment Trust 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 %. Sunway Real Estate Investment Trust's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 4.47%.

As of today (2024-06-21), Sunway Real Estate Investment Trust's WACC % is 4.80%. Sunway Real Estate Investment Trust's ROIC % is 4.39% (calculated using TTM income statement data). Sunway Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sunway Real Estate Investment Trust ROIC % Historical Data

The historical data trend for Sunway Real Estate Investment Trust'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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Sunway Real Estate Investment Trust ROIC % Chart

Sunway Real Estate Investment Trust Annual Data

Trend

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Dec22

Dec23

ROIC %

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3.95

3.67

3.59

4.26

4.40

Sunway Real Estate Investment Trust Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Sep21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															4.66	3.88	4.65	4.50	4.47

Competitive Comparison of Sunway Real Estate Investment Trust's ROIC %

For the REIT - Retail subindustry, Sunway Real Estate Investment Trust'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.

Sunway Real Estate Investment Trust's ROIC % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Sunway Real Estate Investment Trust's ROIC % distribution charts can be found below:

* The bar in red indicates where Sunway Real Estate Investment Trust's ROIC % falls into.

Sunway Real Estate Investment Trust ROIC % Calculation

Sunway Real Estate Investment Trust'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 )
=	478.85 * ( 1 - 0.4% )	/	( (10871.398	+	10828.191)	/ 2 )
=	476.9346	/	10849.7945
=	4.40 %

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	))
=	9413.371	-	134.154	-	( 251.238	-	max(0, 1887.976	-	295.795	+	251.238	))
=	10871.398

	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	))
=	9538.623	-	69.011	-	( 425.305	-	max(0, 1907.083	-	548.504	+	425.305	))
=	10828.191

Sunway Real Estate Investment Trust's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	473.12 * ( 1 - 0% )	/	( (10828.191	+	10323.177)	/ 2 )
=	473.12	/	10575.684
=	4.47 %

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	))
=	9538.623	-	69.011	-	( 425.305	-	max(0, 1907.083	-	548.504	+	425.305	))
=	10828.191

	Invested Capital		(Q: Mar. 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	))
=	9642.294	-	225.066	-	( 479.195	-	max(0, 1514.306	-	608.357	+	479.195	))
=	10323.177

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

Sunway Real Estate Investment Trust (XKLS:5176) 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, Sunway Real Estate Investment Trust's WACC % is 4.80%. Sunway Real Estate Investment Trust's ROIC % is 4.39% (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.

Sunway Real Estate Investment Trust ROIC % Related Terms

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Sunway Real Estate Investment Trust (XKLS:5176) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Sunway Real Estate Investment Trust (XKLS:5176) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Lagoon Timur, Level 15, Menara Sunway, Bandar Sunway, Subang Jaya, SGR, MYS, 47500

Website

https://www.sunwayreit.com

Sunway Real Estate Investment Trust provides unitholders with a diversified portfolio of retail, hospitality, office, and other real estate assets. Sunway REIT divides its property type into four categories: retail, hotel, office, and others. The retail properties, which include shopping malls and hypermarkets, generate the most revenue for the company. The retail properties' tenants include department stores, supermarkets, cinemas, entertainment centers, fashion stores, convention centers, and others. The investment trust focuses on retail and mixed-use assets in cities and townships in Malaysia.

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