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

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


View and export this data going back to 2008. Start your Free Trial

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.

* Premium members only.

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 %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 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 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 2.15 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: 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.

* 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.


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

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


Mitsui O.S.K. Lines Business Description

Traded in Other Exchanges
Address
1-1, Toranomon 2-chome, Shosen Mitsui Building, Minato-ku, Tokyo, JPN, 105-8688
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.

Mitsui O.S.K. Lines Headlines