Lawson (TSE:2651) ROCE % : 3.67% (As of Feb. 2024)

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What is Lawson 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. Lawson's annualized ROCE % for the quarter that ended in Feb. 2024 was 3.67%.

Lawson ROCE % Historical Data

The historical data trend for Lawson'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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Lawson ROCE % Chart

Lawson Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROCE %

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4.46

3.14

4.32

4.20

6.62

Lawson Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															0.84	7.91	7.77	6.76	3.67

Lawson ROCE % Calculation

Lawson's annualized ROCE % for the fiscal year that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	86780	/	( ( (2242421 - 905279)	+	(2297498 - 1011192) )	/ 2 )
	=	86780	/	( (1337142	+	1286306)	/ 2 )
	=	86780	/	1311724
	=	6.62 %

Lawson's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	47140	/	( ( (2265490 - 981892)	+	(2297498 - 1011192) )	/ 2 )
	=	47140	/	( ( 1283598	+	1286306 )	/ 2 )
	=	47140	/	1284952
	=	3.67 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

Lawson (TSE:2651) 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.

Lawson ROCE % Related Terms

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Lawson (TSE:2651) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Lawson Inc (TSE:2651) » Definitions » ROCE %

Comparable Companies

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LAW:Germany

Address

East Tower, Gate City Osaki, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo, JPN, 141-8643

Website

http://www.lawson.co.jp/company/ir/index.html

Lawson is the third-largest convenience-store operator in Japan with more than 14,500 stores domestically, and more than 3,400 stores overseas with more than 90% of stores located in China. Convenience-store operations inclusive of franchise fees represent about 55% of group operating revenue and 75% of operating profits. Other activities include Seijo Ishii (an upscale food-store chain with 163 stores in Japan as of November 2020) and entertainment businesses comprising cinema operations with 43 theaters, the HMV music store chain, and Lawson HMV ticketing services.

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