Maxus Realty Trust (Maxus Realty Trust) ROC % : 1.98% (As of Mar. 2008)

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What is Maxus Realty Trust 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 %. Maxus Realty Trust's annualized return on capital (ROC %) for the quarter that ended in Mar. 2008 was 1.98%.

As of today (2024-05-17), Maxus Realty Trust's WACC % is 0.00%. Maxus Realty Trust's ROC % is 0.00% (calculated using TTM income statement data). Maxus Realty Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Maxus Realty Trust ROC % Historical Data

The historical data trend for Maxus Realty Trust'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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Maxus Realty Trust ROC % Chart

Maxus Realty Trust Annual Data

Trend

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

ROC %

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2.51

1.37

1.08

2.15

2.73

Maxus Realty Trust Quarterly Data
	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08
ROC %	Get a 7-Day Free Trial															2.84	2.81	0.49	4.10	1.98

Maxus Realty Trust ROC % Calculation

Maxus Realty Trust's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2007 is calculated as:

	ROC % (A: Dec. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2006 )	+	Invested Capital (A: Dec. 2007 ))	/ count )
=	1.54 * ( 1 - % )	/	( (45.645	+	67.153)	/ 2 )
=	1.54	/	56.399
=	2.73 %

where

	Invested Capital		(A: Dec. 2006 )
=	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	))
=	54.234	-	1.19	-	( 8.47	-	max(0, 1.19	-	8.589	+	8.47	))
=	45.645

	Invested Capital		(A: Dec. 2007 )
=	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	))
=	72.7	-	1.216	-	( 5.537	-	max(0, 1.216	-	5.547	+	5.537	))
=	67.153

Maxus Realty Trust's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2008 is calculated as:

	ROC % (Q: Mar. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2007 )	+	Invested Capital (Q: Mar. 2008 ))	/ count )
=	1.32 * ( 1 - % )	/	( (67.153	+	66.403)	/ 2 )
=	1.32	/	66.778
=	1.98 %

where

	Invested Capital		(Q: Dec. 2007 )
=	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	))
=	72.7	-	1.216	-	( 5.537	-	max(0, 1.216	-	5.547	+	5.537	))
=	67.153

	Invested Capital		(Q: Mar. 2008 )
=	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	))
=	71.309	-	1.835	-	( 4.905	-	max(0, 1.835	-	4.906	+	4.905	))
=	66.403

Note: The Operating Income data used here is four times the quarterly (Mar. 2008) data.

Maxus Realty Trust (OTCPK:MRTI) 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, Maxus Realty Trust's WACC % is 0.00%. Maxus Realty Trust's ROC % is 0.00% (calculated using TTM income statement data). Maxus Realty Trust 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.

Maxus Realty Trust ROC % Related Terms

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Maxus Realty Trust (Maxus Realty Trust) Business Description

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GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Maxus Realty Trust Inc (OTCPK:MRTI) » Definitions » ROC %

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Address

104 Armour Road, PO Box 34729, North Kansas City, MO, USA, 64116

Website

http://www.mrti.com

Maxus Realty Trust Inc is a real estate company. The trust's purpose is to acquire interests in income-producing real properties, primarily multifamily apartment communities. It invests in income-producing real properties and multifamily apartment communities.