AEON Co (AEON Co) ROC % : 0.14% (As of Nov. 2023)

View and export this data going back to 1983. Start your Free Trial

What is AEON Co 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 %. AEON Co's annualized return on capital (ROC %) for the quarter that ended in Nov. 2023 was 0.14%.

As of today (2024-04-26), AEON Co's WACC % is 1.82%. AEON Co's ROC % is 1.28% (calculated using TTM income statement data). AEON Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AEON Co ROC % Historical Data

The historical data trend for AEON Co'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.

* Premium members only.

AEON Co ROC % Chart

AEON Co Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROC %

Get a 7-Day Free Trial

0.98

-1.10

0.76

0.91

1.21

AEON Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															2.33	1.25	1.07	0.14	2.71

AEON Co ROC % Calculation

AEON Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	1676.483 * ( 1 - 42.21% )	/	( (83048.915	+	77155.699)	/ 2 )
=	968.8395257	/	80102.307
=	1.21 %

where

	Invested Capital		(A: Feb. 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	))
=	92761.114	-	8179.792	-	( 13664.025	-	max(0, 56205.08	-	57737.487	+	13664.025	))
=	83048.915

	Invested Capital		(A: Feb. 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	))
=	86494.462	-	7520.743	-	( 12256.839	-	max(0, 51952.772	-	53770.792	+	12256.839	))
=	77155.699

AEON Co's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2023 is calculated as:

	ROC % (Q: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Nov. 2023 ))	/ count )
=	673.44 * ( 1 - 83.94% )	/	( (77840.433	+	77714.957)	/ 2 )
=	108.154464	/	77777.695
=	0.14 %

where

	Invested Capital		(Q: Aug. 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	))
=	88104.654	-	7891.324	-	( 12416.501	-	max(0, 52493.052	-	54865.949	+	12416.501	))
=	77840.433

	Invested Capital		(Q: Nov. 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	))
=	86922.661	-	7854.996	-	( 11106.555	-	max(0, 52656.732	-	54009.44	+	11106.555	))
=	77714.957

Note: The Operating Income data used here is four times the quarterly (Nov. 2023) data.

AEON Co (OTCPK:AONNY) 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, AEON Co's WACC % is 1.82%. AEON Co's ROC % is 1.28% (calculated using TTM income statement data). AEON Co 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.

AEON Co ROC % Related Terms

Thank you for viewing the detailed overview of AEON Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

AEON Co (AEON Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » AEON Co Ltd (OTCPK:AONNY) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

8267:Japan JUS1:Germany

Address

1-5-1 Nakase, Minami-ku, Chiba-shi, Chiba, JPN, 261-8515

Website

http://www.aeon.info

AEON Co Ltd is the holding company of Aeon Group, integrated Japanese retailer, and is active not only in Japan but also throughout countries in the Association of Southeast Asian Nations and China. The business is segmented in four main divisions: supermarket and discount store, drugstore and pharmacy, shopping-center development, and financial sevices. The company's core operations are general merchandise store, supermarket, and convenience-store operations. Aeon is also active in specialty store operations, shopping-center development and operations, and credit card business and services.