Matsudangyo Co (TSE:7456) ROC % : 7.14% (As of Sep. 2024)

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What is Matsudangyo 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 %. Matsudangyo Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 7.14%.

As of today (2025-01-19), Matsudangyo Co's WACC % is 1.64%. Matsudangyo Co's ROC % is 6.16% (calculated using TTM income statement data). Matsudangyo 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.

Matsudangyo Co ROC % Historical Data

The historical data trend for Matsudangyo 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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Matsudangyo Co ROC % Chart

Matsudangyo Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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5.97

7.29

10.32

10.02

5.81

Matsudangyo 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															6.60	4.48	5.49	7.22	7.14

Matsudangyo Co ROC % Calculation

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

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	9356 * ( 1 - 30.65% )	/	( (103171	+	120079)	/ 2 )
=	6488.386	/	111625
=	5.81 %

where

	Invested Capital		(A: Mar. 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	))
=	129208	-	14276	-	( 11761	-	max(0, 27893	-	89327	+	11761	))
=	103171

	Invested Capital		(A: 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	))
=	148937	-	14290	-	( 14568	-	max(0, 44516	-	102300	+	14568	))
=	120079

Matsudangyo Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	12604 * ( 1 - 28.71% )	/	( (0	+	125811)	/ 1 )
=	8985.3916	/	125811
=	7.14 %

where

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Sep. 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	))
=	156504	-	16823	-	( 13870	-	max(0, 39900	-	108352	+	13870	))
=	125811

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

Matsudangyo Co (TSE:7456) 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, Matsudangyo Co's WACC % is 1.64%. Matsudangyo Co's ROC % is 6.16% (calculated using TTM income statement data). Matsudangyo 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.

Matsudangyo Co ROC % Related Terms

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Matsudangyo Co Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Matsuda Sangyo Co Ltd (TSE:7456) » Definitions » ROC %

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Address

Shinjuku Nomura Building 6th Floor, 1-26-2 Nishishinjuku Shinjuku-ku, Tokyo, JPN, 1630558

Website

http://www.matsuda-sangyo.co.jp

Matsuda Sangyo Co Ltd is a Japan-based company engaged in the precious metals business and food business. In precious metals business, the company collects, recover, and refine precious metals like gold, silver, platinum palladium and rhodium. Besides precious metals, it also supplies raw materials and compounds of aluminium, chromium, nickel and other. The firm manufactures and sells plating chemicals, soldering, contact and scientific analysis tools, clean air filters, and other related tools. In the food business, the group supplies and trades raw materials to food makers. It is also involved in the activity of food processing. Some of the key products in the food business are marine products, agricultural products, livestock products and surimi.

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