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Kansai Electric Power Co (Kansai Electric Power Co) ROC % : -15.75% (As of Dec. 2023)


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What is Kansai Electric Power 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 %. Kansai Electric Power Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -15.75%.

As of today (2024-04-30), Kansai Electric Power Co's WACC % is 1.14%. Kansai Electric Power Co's ROC % is 6.39% (calculated using TTM income statement data). Kansai Electric Power Co 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.


Kansai Electric Power Co ROC % Historical Data

The historical data trend for Kansai Electric Power 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.

Kansai Electric Power Co ROC % Chart

Kansai Electric Power Co Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.72 1.82 1.24 0.77 1.96

Kansai Electric Power Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.18 6.22 8.29 7.63 -15.75

Kansai Electric Power Co ROC % Calculation

Kansai Electric Power Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=-389.453 * ( 1 - 457.15% )/( (75626.89 + 66374.095)/ 2 )
=1390.9313895/71000.4925
=1.96 %

where

Invested Capital(A: Mar. 2022 )
=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))
=73002.36 - 2102.897 - ( 3955.661 - max(0, 16020.734 - 11293.307+3955.661))
=75626.89

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))
=65645.24 - 1721.926 - ( 1997.25 - max(0, 11912.021 - 9461.24+1997.25))
=66374.095

Kansai Electric Power Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=3457.832 * ( 1 - 370.5% )/( (58969.365 + 59837.737)/ 2 )
=-9353.43556/59403.551
=-15.75 %

where

Invested Capital(Q: Sep. 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))
=60146.714 - 2107.789 - ( 2682.499 - max(0, 10162.474 - 9232.034+2682.499))
=58969.365

Invested Capital(Q: Dec. 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))
=60819.96 - 2324.729 - ( 2709.424 - max(0, 10425.735 - 9083.229+2709.424))
=59837.737

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

* 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.


Kansai Electric Power Co  (OTCPK:KAEPF) 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, Kansai Electric Power Co's WACC % is 1.14%. Kansai Electric Power Co's ROC % is 6.39% (calculated using TTM income statement data). Kansai Electric Power Co 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.


Kansai Electric Power Co ROC % Related Terms

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Kansai Electric Power Co (Kansai Electric Power Co) Business Description

Traded in Other Exchanges
Address
36-16, Nakanoshima 3-chome, Kita-ku, Osaka, JPN, 530-8270
Kansai Electric Power Co Inc is an electric utility company that supplies power to the Kansai region of the Japanese archipelago. The company controls a portfolio of hydroelectric, thermal, nuclear, and solar power plants located in Kansai and in other countries throughout Southeast Asia. The vast majority of the energy produced by Kansai Electric comes from its thermal facilities. The company generates most of its revenue from the sale of electricity, heat, and gas to households and corporate customers. Kansai Electric's utility services, information technology, and real estate businesses also represent substantial revenue streams. The company provides energy to a significant percentage of the Japanese population.

Kansai Electric Power Co (Kansai Electric Power Co) Headlines

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