Kids Star (TSE:248A) ROC % : 29.40% (As of Dec. 2023)

View and export this data going back to 2024. Start your Free Trial

What is Kids Star 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 %. Kids Star's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 29.40%.

As of today (2025-04-05), Kids Star's WACC % is 0.00%. Kids Star's ROC % is 0.00% (calculated using TTM income statement data). Kids Star earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kids Star ROC % Historical Data

The historical data trend for Kids Star'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.

Kids Star ROC % Chart

Kids Star Annual Data

Trend

Dec22

Dec23

ROC %

18.90

25.41

Kids Star Semi-Annual Data
	Dec22	Jun23	Dec23
ROC %	-	15.38	29.40

Kids Star ROC % Calculation

Kids Star'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 )
=	157.858 * ( 1 - 28.55% )	/	( (396.332	+	491.554)	/ 2 )
=	112.789541	/	443.943
=	25.41 %

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	))
=	574.891	-	45.265	-	( 318.253	-	max(0, 265.572	-	398.866	+	318.253	))
=	396.332

	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	))
=	772.006	-	68.575	-	( 497.422	-	max(0, 352.981	-	564.858	+	497.422	))
=	491.554

Kids Star'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	205.552 * ( 1 - 25.64% )	/	( (548.314	+	491.554)	/ 2 )
=	152.8484672	/	519.934
=	29.40 %

where

	Invested Capital		(Q: Jun. 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	))
=	796.851	-	23.805	-	( 511.68	-	max(0, 342.913	-	567.645	+	511.68	))
=	548.314

	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	))
=	772.006	-	68.575	-	( 497.422	-	max(0, 352.981	-	564.858	+	497.422	))
=	491.554

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Kids Star (TSE:248A) 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, Kids Star's WACC % is 0.00%. Kids Star's ROC % is 0.00% (calculated using TTM income statement data). Kids Star 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.

Kids Star ROC % Related Terms

Thank you for viewing the detailed overview of Kids Star's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Kids Star Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Kids Star Inc (TSE:248A) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9-5 Shinsencho, Shibuya-ku, Tokyo, JPN, 150-0045

Website

https://www.kidsstar.co.jp

Kids Star Inc is engaged in development and operation of Gokko Land a social experience application for families, and planning and operation of events, and business development support for companies and organizations related to products for children.

Kids Star Headlines

No Headlines