MSLOY (Mitsui O.S.K. Lines) ROC % : 4.34% (As of Sep. 2024)

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What is Mitsui O.S.K. Lines 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 %. Mitsui O.S.K. Lines's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.34%.

As of today (2024-12-12), Mitsui O.S.K. Lines's WACC % is 4.14%. Mitsui O.S.K. Lines's ROC % is 3.31% (calculated using TTM income statement data). Mitsui O.S.K. Lines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mitsui O.S.K. Lines ROC % Historical Data

The historical data trend for Mitsui O.S.K. Lines'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.

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Mitsui O.S.K. Lines ROC % Chart

Mitsui O.S.K. Lines Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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0.93

-0.23

2.17

3.18

2.21

Mitsui O.S.K. Lines 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															2.15	2.76	2.30	3.47	4.34

Mitsui O.S.K. Lines ROC % Calculation

Mitsui O.S.K. Lines'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 )
=	688.386 * ( 1 - 11.02% )	/	( (27591.744	+	27740.04)	/ 2 )
=	612.5258628	/	27665.892
=	2.21 %

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	))
=	26665.662	-	799.398	-	( 706.703	-	max(0, 5006.393	-	3280.913	+	706.703	))
=	27591.744

	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	))
=	27503.608	-	975.34	-	( 787.079	-	max(0, 4320.839	-	3109.067	+	787.079	))
=	27740.04

Mitsui O.S.K. Lines'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 )
=	1357.612 * ( 1 - 3.99% )	/	( (0	+	30048.455)	/ 1 )
=	1303.4432812	/	30048.455
=	4.34 %

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	))
=	31294.311	-	915.931	-	( 1034.431	-	max(0, 3307.637	-	3637.562	+	1034.431	))
=	30048.455

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

Mitsui O.S.K. Lines (OTCPK:MSLOY) 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, Mitsui O.S.K. Lines's WACC % is 4.14%. Mitsui O.S.K. Lines's ROC % is 3.31% (calculated using TTM income statement data). Mitsui O.S.K. Lines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Mitsui O.S.K. Lines ROC % Related Terms

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Mitsui O.S.K. Lines Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Mitsui O.S.K. Lines Ltd (OTCPK:MSLOY) » Definitions » ROC %

Traded in Other Exchanges

MSLOF:USA 9104:Japan MILA:Germany

Address

1-1, Toranomon 2-chome, Shosen Mitsui Building, Minato-ku, Tokyo, JPN, 105-8688

Website

http://www.mol.co.jp

Mitsui O.S.K. Lines Ltd is a Japanese transportation and logistics company. It operates through five segments: dry bulk, energy transport, product transport, associated businesses, and other. The product transport business a contributor to revenue. Product transport largely focuses on the ownership and operation of containerships, followed by logistics services, car carriers, and inshore ferries. Dry bulk involves transporting materials such as iron ore, coal, grains, wood, cement, salt, and more via company-owned and operated bulk carriers. The energy transport business uses Mitsui tankers to ship crude oil, naphtha, liquefied natural gas, and other energy products. Majority of its revenue is generated domestically in Japan.