AEON Fantasy Co (TSE:4343) ROC % : 4.43% (As of Aug. 2024)

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What is AEON Fantasy 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 %. AEON Fantasy Co's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 4.43%.

As of today (2024-12-11), AEON Fantasy Co's WACC % is 0.90%. AEON Fantasy Co's ROC % is 1.21% (calculated using TTM income statement data). AEON Fantasy 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.

AEON Fantasy Co ROC % Historical Data

The historical data trend for AEON Fantasy 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.

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AEON Fantasy Co ROC % Chart

AEON Fantasy Co Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROC %

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-3.32

-9.28

-4.77

2.09

2.14

AEON Fantasy 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															7.64	-3.49	6.62	0.24	4.43

AEON Fantasy Co ROC % Calculation

AEON Fantasy Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	3585.536 * ( 1 - 59.03% )	/	( (64737.142	+	72305.128)	/ 2 )
=	1468.9940992	/	68521.135
=	2.14 %

where

	Invested Capital		(A: Feb. 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	))
=	46917.307	-	3692.179	-	( 6081.975	-	max(0, 32354.531	-	10842.517	+	6081.975	))
=	64737.142

	Invested Capital		(A: Feb. 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	))
=	52303.062	-	4726.193	-	( 7516.588	-	max(0, 37652.722	-	12924.463	+	7516.588	))
=	72305.128

AEON Fantasy 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 )
=	9537.364 * ( 1 - 66.93% )	/	( (70096.079	+	72404.415)	/ 2 )
=	3154.0062748	/	71250.247
=	4.43 %

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	))
=	54240.563	-	2456.431	-	( 7035.354	-	max(0, 31422.433	-	13110.486	+	7035.354	))
=	70096.079

	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	))
=	59178.805	-	3898.512	-	( 7356.393	-	max(0, 35420.342	-	18296.22	+	7356.393	))
=	72404.415

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

AEON Fantasy Co (TSE:4343) 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, AEON Fantasy Co's WACC % is 0.90%. AEON Fantasy Co's ROC % is 1.21% (calculated using TTM income statement data). AEON Fantasy 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.

AEON Fantasy Co ROC % Related Terms

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AEON Fantasy Co Business Description

Industry

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Address

1-6 Nakase, Mihama-ku, Chiba-shi, Chiba, JPN, 261-0023

Website

http://www.fantasy.co.jp

AEON Fantasy Co Ltd creates, manages and promotes indoor theme parks for children under 12 years of age and their families. Its indoor theme parks are located in large shopping centers with the concept of family entertainment. The firm's theme parks are designed with the themes of sharing communication and forest fun with the facilities merry go rounds, interactive games, medal games, card games and other amusement items. It also develops and sells original play equipment and prizes. The company operates only in Japan.

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