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Japan PC Service Co (NGO:6025) ROC % : 16.92% (As of Aug. 2024)


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What is Japan PC Service 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 %. Japan PC Service Co's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 16.92%.

As of today (2025-03-02), Japan PC Service Co's WACC % is 1.75%. Japan PC Service Co's ROC % is 5.87% (calculated using TTM income statement data). Japan PC Service 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.


Japan PC Service Co ROC % Historical Data

The historical data trend for Japan PC Service 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.

Japan PC Service Co ROC % Chart

Japan PC Service Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.72 4.09 -17.49 2.95 5.78

Japan PC Service Co Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 25.80 0.32 1.79 8.04 16.92

Japan PC Service Co ROC % Calculation

Japan PC Service Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2024 is calculated as:

ROC % (A: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2023 ) + Invested Capital (A: Aug. 2024 ))/ count )
=116.19 * ( 1 - 24.99% )/( (1551.61 + 1461.824)/ 2 )
=87.154119/1506.717
=5.78 %

where

Invested Capital(A: Aug. 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))
=1996.704 - 348.052 - ( 664.506 - max(0, 1387.187 - 1484.229+664.506))
=1551.61

Invested Capital(A: Aug. 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))
=2100.192 - 427.534 - ( 666.561 - max(0, 1459.392 - 1670.226+666.561))
=1461.824

Japan PC Service Co's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=159.224 * ( 1 - -55.8% )/( (1470.716 + 1461.824)/ 2 )
=248.070992/1466.27
=16.92 %

where

Invested Capital(Q: May. 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))
=2098.32 - 428.317 - ( 646.082 - max(0, 1439.75 - 1639.037+646.082))
=1470.716

Invested Capital(Q: Aug. 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))
=2100.192 - 427.534 - ( 666.561 - max(0, 1459.392 - 1670.226+666.561))
=1461.824

Note: The Operating Income data used here is four times the quarterly (Aug. 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.


Japan PC Service Co  (NGO:6025) 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, Japan PC Service Co's WACC % is 1.75%. Japan PC Service Co's ROC % is 5.87% (calculated using TTM income statement data). Japan PC Service 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.


Japan PC Service Co ROC % Related Terms

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Japan PC Service Co Business Description

Traded in Other Exchanges
N/A
Address
Osaka Prefecture Hiroshiba-cho, Yubinbango 564-0052 Suita, 9-33 pre-shea Dent building 7F, Osaka, JPN
Japan PC Service Co Ltd provides computer integrated service, personal computer troubleshooting service, personal computer repair service, computer lessons, computer sales, and corporate maintenance.

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