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Create SD Holdings Co (TSE:3148) ROC % : 12.67% (As of May. 2024)


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What is Create SD Holdings 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 %. Create SD Holdings Co's annualized return on capital (ROC %) for the quarter that ended in May. 2024 was 12.67%.

As of today (2024-12-14), Create SD Holdings Co's WACC % is 2.38%. Create SD Holdings Co's ROC % is 12.22% (calculated using TTM income statement data). Create SD Holdings 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.


Create SD Holdings Co ROC % Historical Data

The historical data trend for Create SD Holdings 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.

Create SD Holdings Co ROC % Chart

Create SD Holdings Co Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.88 15.39 13.98 12.74 12.00

Create SD Holdings 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 11.31 11.45 12.68 12.67 11.29

Create SD Holdings Co ROC % Calculation

Create SD Holdings Co's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

ROC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2023 ) + Invested Capital (A: May. 2024 ))/ count )
=20231 * ( 1 - 29.25% )/( (111591 + 127013)/ 2 )
=14313.4325/119302
=12.00 %

where

Create SD Holdings Co's annualized Return on Capital (ROC %) for the quarter that ended in May. 2024 is calculated as:

ROC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: May. 2024 ))/ count )
=18556 * ( 1 - 14.94% )/( (122187 + 127013)/ 2 )
=15783.7336/124600
=12.67 %

where

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


Create SD Holdings Co  (TSE:3148) 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, Create SD Holdings Co's WACC % is 2.38%. Create SD Holdings Co's ROC % is 12.22% (calculated using TTM income statement data). Create SD Holdings 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.


Create SD Holdings Co ROC % Related Terms

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Create SD Holdings Co Business Description

Traded in Other Exchanges
N/A
Address
Edanishi two at 3-chome, Aoba-ku, Yokohama, JPN, 225-0014
Create SD Holdings Co Ltd operates drugstores, pharmacy dispensing businesses, and nursing care services. The company's drugstores sell pharmaceuticals, cosmetics, and food products, while the dispensing pharmacy business operates regional clinics. Create SD maintains nursing homes that facilitate elderly residents with services regarding health management, diet, and long-term care through preventative training classes.

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