Sapporo Holdings (STU:SBW) ROC % : 4.28% (As of Jun. 2024)

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What is Sapporo Holdings 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 %. Sapporo Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 4.28%.

As of today (2024-12-13), Sapporo Holdings's WACC % is -0.47%. Sapporo Holdings's ROC % is 2.58% (calculated using TTM income statement data). Sapporo Holdings 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.

Sapporo Holdings ROC % Historical Data

The historical data trend for Sapporo Holdings'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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Sapporo Holdings ROC % Chart

Sapporo Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.20

-2.07

2.04

0.75

1.27

Sapporo Holdings 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															5.26	2.28	-1.54	4.28	4.39

Sapporo Holdings ROC % Calculation

Sapporo Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	75.28 * ( 1 - 27.88% )	/	( (4496.152	+	4036.516)	/ 2 )
=	54.291936	/	4266.334
=	1.27 %

where

	Invested Capital		(A: Dec. 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	))
=	4471.914	-	256.23	-	( 166.767	-	max(0, 1535.948	-	1255.48	+	166.767	))
=	4496.152

	Invested Capital		(A: 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	))
=	4226.213	-	284.281	-	( 137.549	-	max(0, 1217.754	-	1123.17	+	137.549	))
=	4036.516

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

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	225.228 * ( 1 - 23.75% )	/	( (4066.595	+	3962.31)	/ 2 )
=	171.73635	/	4014.4525
=	4.28 %

where

	Invested Capital		(Q: 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	))
=	4099.264	-	224.279	-	( 133.494	-	max(0, 1152.295	-	960.685	+	133.494	))
=	4066.595

	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	))
=	4054.98	-	255.643	-	( 147.436	-	max(0, 1168.636	-	1005.663	+	147.436	))
=	3962.31

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

Sapporo Holdings (STU:SBW) 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, Sapporo Holdings's WACC % is -0.47%. Sapporo Holdings's ROC % is 2.58% (calculated using TTM income statement data). Sapporo Holdings 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.

Sapporo Holdings ROC % Related Terms

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Sapporo Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Sapporo Holdings Ltd (STU:SBW) » Definitions » ROC %

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Traded in Other Exchanges

2501:Japan SBW:Germany

Address

20-1, Ebisu 4-chome, Shibuya-ku, Tokyo, JPN, 150-8522

Website

http://www.sapporoholdings.jp

Sapporo Holdings Ltd primarily sells alcoholic beverages, food, and soft drinks. Alcoholic beverage sales in Japan, which consist mostly of beer sales under the Sapporo and Yebisu brand names, make up more than half of Sapporo's total revenue. Roughly a quarter of Sapporo's revenue is from its Food and Soft Drink business, which includes its Café de Crie coffee shops in addition to many brands and products. Sapporo has international food and beverage sales in North America and other parts of Asia. Sapporo's remaining revenue comes from its restaurants, which are in Japan and operate under brand names including Ginza Lion Beer Hall and Yebisu Bar, and its real estate business, which develops, leases, and manages commercial complexes and office buildings in Japan.

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