Octo Fundo De Investimento Imobiliario (BSP:OCRE11) ROC % : 0.00% (As of Dec. 2023)

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What is Octo Fundo De Investimento Imobiliario ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Octo Fundo De Investimento Imobiliario's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-06-06), Octo Fundo De Investimento Imobiliario's WACC % is 10.50%. Octo Fundo De Investimento Imobiliario's ROC % is 0.00% (calculated using TTM income statement data). Octo Fundo De Investimento Imobiliario earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Octo Fundo De Investimento Imobiliario ROC % Historical Data

The historical data trend for Octo Fundo De Investimento Imobiliario's ROC % 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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Octo Fundo De Investimento Imobiliario ROC % Chart

Octo Fundo De Investimento Imobiliario Annual Data

Trend

Dec22

Dec23

ROC %

Octo Fundo De Investimento Imobiliario Semi-Annual Data
	Dec22	Dec23
ROC %	-	-

Octo Fundo De Investimento Imobiliario ROC % Calculation

Octo Fundo De Investimento Imobiliario's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	0 * ( 1 - % )	/	( (0	+	0.0040000000000013)	/ 1 )
=	0	/	0.0040000000000013
=	0.00 %

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	))
=	28.303	-	0.05	-	( 28.303	-	max(0, 0.05	-	28.303	+	28.303	))
=	0

	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	))
=	29.369	-	0.047	-	( 29.365	-	max(0, 0.047	-	29.365	+	29.365	))
=	0.0040000000000013

Octo Fundo De Investimento Imobiliario's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0 * ( 1 - % )	/	( (0	+	0.0040000000000013)	/ 1 )
=	0	/	0.0040000000000013
=	0.00 %

where

	Invested Capital		(Q: 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	))
=	28.303	-	0.05	-	( 28.303	-	max(0, 0.05	-	28.303	+	28.303	))
=	0

	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	))
=	29.369	-	0.047	-	( 29.365	-	max(0, 0.047	-	29.365	+	29.365	))
=	0.0040000000000013

Note: The Operating Income data used here is one times the annual (Dec. 2023) data.

Octo Fundo De Investimento Imobiliario (BSP:OCRE11) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Octo Fundo De Investimento Imobiliario's WACC % is 10.50%. Octo Fundo De Investimento Imobiliario's ROC % is 0.00% (calculated using TTM income statement data). Octo Fundo De Investimento Imobiliario 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 %, ROC % 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.

Octo Fundo De Investimento Imobiliario ROC % Related Terms

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Octo Fundo De Investimento Imobiliario (BSP:OCRE11) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Octo Fundo De Investimento Imobiliario (BSP:OCRE11) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Avenue Pres Juscelino Kubitschek, 1726, 19 Andar- Vila Nova Conceicao, Sao Paulo, SP, BRA, 04543000

Website

https://www.idsf.com.br

Octo Fundo De Investimento Imobiliario is intended for investors in general, including, but not limited to, natural or legal persons, investment funds, entities authorized to operate by the Central Bank of Brazil, insurance companies, private pension and capitalization entities, as well as non-public investors. The purpose of the Fund is to provide shareholders with income and capital gain, through the investment of their assets in the following target assets: shares of other real estate investment funds, certificates of real estate receivables, mortgage bills, real estate credit notes, guaranteed real estate bills, certificates of additional construction potential, issued based on Instruction, etc.

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