Kobe Steel (TSE:5406) ROCE % : 9.54% (As of Dec. 2023)

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What is Kobe Steel 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. Kobe Steel's annualized ROCE % for the quarter that ended in Dec. 2023 was 9.54%.

Kobe Steel ROCE % Historical Data

The historical data trend for Kobe Steel'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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Kobe Steel ROCE % Chart

Kobe Steel Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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3.84

-3.56

1.80

5.39

6.07

Kobe Steel 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															6.81	7.51	8.57	18.52	9.54

Kobe Steel ROCE % Calculation

Kobe Steel'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 )
	=	111409	/	( ( (2728745 - 884939)	+	(2874751 - 1049803) )	/ 2 )
	=	111409	/	( (1843806	+	1824948)	/ 2 )
	=	111409	/	1834377
	=	6.07 %

Kobe Steel'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 )
	=	184296	/	( ( (2935107 - 1023970)	+	(2976275 - 1024526) )	/ 2 )
	=	184296	/	( ( 1911137	+	1951749 )	/ 2 )
	=	184296	/	1931443
	=	9.54 %

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

Kobe Steel (TSE:5406) 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.

Kobe Steel ROCE % Related Terms

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Kobe Steel (TSE:5406) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Kobe Steel Ltd (TSE:5406) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KBSTF:USA KST:Germany

Address

2-4, Wakinohama-Kaigandori 2-chome, Chuo-ku, Kobe, Hyogo, JPN, 651-8585

Website

http://www.kobelco.co.jp

Kobe Steel Ltd is a Japan-based company that is primarily engaged in iron and steel, aluminum and copper, construction machinery, nonconstruction machinery, and engineering businesses. Its iron and steel business involves production of steel products, steel casting and forging, and manufacturing of titanium and steel powder. Its aluminum and copper segment manufactures aluminum and copper products. Its construction machinery segment develops and manufactures construction equipment. The nonconstruction machinery segment offers industrial machinery, compressors and equipment for the nuclear and other energy industries. The engineering segment provides solutions to plants, power stations, and water treatment companies. Japan and China account for the majority of the company's revenue.

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