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Nippon Paper Group, (TSE:3893) ROCE % : 1.86% (As of Dec. 2012)


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What is Nippon Paper Group, ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Nippon Paper Group,'s annualized ROCE % for the quarter that ended in Dec. 2012 was 1.86%.

Nippon Paper Group, ROCE % Historical Data

The historical data trend for Nippon Paper Group,'s ROCE % 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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Nippon Paper Group, ROCE % Chart

Nippon Paper Group, Annual Data
Trend Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.20 1.90 4.10 3.41 3.58

Nippon Paper Group, Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12
ROCE % Get a 7-Day Free Trial 4.07 4.70 2.31 2.60 1.86

Nippon Paper Group, ROCE % Calculation

Nippon Paper Group,'s annualized ROCE % for the fiscal year that ended in Mar. 2012 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2012 )  (A: Mar. 2011 )(A: Mar. 2012 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2012 )  (A: Mar. 2011 )(A: Mar. 2012 )
=36524/( ( (1560592 - 550285) + (1527635 - 497777) )/ 2 )
=36524/( (1010307+1029858)/ 2 )
=36524/1020082.5
=3.58 %

Nippon Paper Group,'s ROCE % of for the quarter that ended in Dec. 2012 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2012 )  (Q: Sep. 2012 )(Q: Dec. 2012 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2012 )  (Q: Sep. 2012 )(Q: Dec. 2012 )
=19096/( ( (1506151 - 484454) + (1502053 - 471393) )/ 2 )
=19096/( ( 1021697 + 1030660 )/ 2 )
=19096/1026178.5
=1.86 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2012) EBIT data.

* 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.

Nippon Paper Group,  (TSE:3893) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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