Toyo Tanso Co (TSE:5310) ROC % : 11.90% (As of Jun. 2024)

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What is Toyo Tanso 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 %. Toyo Tanso Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 11.90%.

As of today (2024-12-13), Toyo Tanso Co's WACC % is 8.80%. Toyo Tanso Co's ROC % is 11.60% (calculated using TTM income statement data). Toyo Tanso 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.

Toyo Tanso Co ROC % Historical Data

The historical data trend for Toyo Tanso 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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Toyo Tanso Co ROC % Chart

Toyo Tanso Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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7.44

4.54

7.13

7.57

9.89

Toyo Tanso Co 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															8.79	10.56	9.57	11.90	13.23

Toyo Tanso Co ROC % Calculation

Toyo Tanso Co'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 )
=	9283 * ( 1 - 27.23% )	/	( (65044	+	71565)	/ 2 )
=	6755.2391	/	68304.5
=	9.89 %

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	))
=	89432	-	5952	-	( 18436	-	max(0, 11147	-	53861	+	18436	))
=	65044

	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	))
=	96612	-	6916	-	( 18131	-	max(0, 11111	-	58099	+	18131	))
=	71565

Toyo Tanso Co'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 )
=	13044 * ( 1 - 29.11% )	/	( (75851	+	79555)	/ 2 )
=	9246.8916	/	77703
=	11.90 %

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	))
=	97723	-	6076	-	( 15796	-	max(0, 11136	-	57792	+	15796	))
=	75851

	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	))
=	104204	-	7631	-	( 17018	-	max(0, 12888	-	60819	+	17018	))
=	79555

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

Toyo Tanso Co (TSE:5310) 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, Toyo Tanso Co's WACC % is 8.80%. Toyo Tanso Co's ROC % is 11.60% (calculated using TTM income statement data). Toyo Tanso 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.

Toyo Tanso Co ROC % Related Terms

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Toyo Tanso Co Business Description

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Address

Nishiyodogawa ku Takeshima 5-7-12, Osaka, JPN, 555-0011

Website

http://www.toyotanso.co.jp

Toyo Tanso Co Ltd is a Japanese corporation engaged in the manufacture of electronic materials such as special graphite and other carbon products which are employed in processes like single crystal silicon pulling furnaces, heaters, and metal-organic chemical vapor deposition devices. Its portfolio of carbon products includes bearings for pumps and compressors, sealing materials, pantograph sliders, automobile parts, carbon brushes and motor brushes. Toyo attends to various industries ranging from the living space to advanced aerospace and medical fields such as aerospace and medical care, especially solar cells, nuclear power and other environmental and energy fields.

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