Kaneka (TSE:4118) ROCE % : 6.41% (As of Dec. 2023)

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What is Kaneka 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. Kaneka's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.41%.

Kaneka ROCE % Historical Data

The historical data trend for Kaneka'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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Kaneka ROCE % Chart

Kaneka Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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7.62

4.85

5.23

7.91

6.75

Kaneka Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															3.58	4.91	5.57	6.33	6.41

Kaneka ROCE % Calculation

Kaneka's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	34338	/	( ( (726959 - 234502)	+	(782640 - 258242) )	/ 2 )
	=	34338	/	( (492457	+	524398)	/ 2 )
	=	34338	/	508427.5
	=	6.75 %

Kaneka's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	35180	/	( ( (841246 - 299302)	+	(850620 - 294448) )	/ 2 )
	=	35180	/	( ( 541944	+	556172 )	/ 2 )
	=	35180	/	549058
	=	6.41 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Kaneka (TSE:4118) 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.

Kaneka ROCE % Related Terms

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Kaneka (TSE:4118) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Kaneka Corp (TSE:4118) » Definitions » ROCE %

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KANKF:USA KKA:Germany

Address

3-2-4, Nakanoshima, Kita-ku, Osaka, JPN, 530-8288

Website

http://www.kaneka.co.jp

Kaneka Corp manufactures and sells a variety of chemicals, plastics, and chemical-based products. The company organizes itself into seven segments based on product type. The foodstuffs segment, which generates more revenue than any other segment, sells margarine, shortening, bakery yeast and spices. The chemicals segment sells polyvinyl chloride used in pipes and flooring. The functional and expandable products segments sell polystyrene- and silicone-based products. The life science products segment sells medical devices, which include balloon catheters for vessel stenosis, and pharmaceutical ingredients. The electronic products segment sells heat resistant films and optical materials. The synthetic fibers segment sells fibers used to make apparel. The majority of revenue comes from Japan.

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