Heiwa (FRA:HWC) ROC % : 5.25% (As of Sep. 2024)

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

What is Heiwa 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 %. Heiwa's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 5.25%.

As of today (2024-12-15), Heiwa's WACC % is 0.06%. Heiwa's ROC % is 5.18% (calculated using TTM income statement data). Heiwa generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Heiwa ROC % Historical Data

The historical data trend for Heiwa'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.

Heiwa ROC % Chart

Heiwa Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

4.35

0.57

0.70

5.16

4.20

Heiwa Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															2.98	4.38	5.07	5.74	5.25

Heiwa ROC % Calculation

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

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	143.884 * ( 1 - 26.97% )	/	( (2717.227	+	2288.102)	/ 2 )
=	105.0784852	/	2502.6645
=	4.20 %

where

	Invested Capital		(A: Mar. 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	))
=	2960.858	-	53.826	-	( 473.176	-	max(0, 485.356	-	675.161	+	473.176	))
=	2717.227

	Invested Capital		(A: Mar. 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	))
=	2628.423	-	55.218	-	( 354.402	-	max(0, 313.044	-	598.147	+	354.402	))
=	2288.102

Heiwa's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	170.2 * ( 1 - 27.11% )	/	( (0	+	2361.676)	/ 1 )
=	124.05878	/	2361.676
=	5.25 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Sep. 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	))
=	2731.079	-	42.613	-	( 364.008	-	max(0, 288.356	-	615.146	+	364.008	))
=	2361.676

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Heiwa (FRA:HWC) 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, Heiwa's WACC % is 0.06%. Heiwa's ROC % is 5.18% (calculated using TTM income statement data). Heiwa generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Heiwa ROC % Related Terms

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

Heiwa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Heiwa Corp (FRA:HWC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

6412:Japan

Address

1 Chome-16-1 Higashiueno, Taito-ku, Tokyo, JPN, 110-0015

Website

http://www.heiwanet.co.jp

Heiwa Corp is a gambling company involved in the manufacturing and sales of pachinko and pachislot machines. The company operates in two business segments: game machines and golf. The game machine business develops pachinko machines, a gambling device with pinball-like characteristics, which are sold to pachinko parlors throughout Japan. Pachinko parlors allow users to purchase small steel balls, which are utilized in pachinko machines under the objective of winning more balls, which can then be exchanged for prizes. Pachislot machines, which are a similar gambling device with characteristics of pachinko and slot machines, are developed in a similar manner. The company's golf segment operates a number of golf courses. Heiwa generates the vast majority of its revenue in Japan.