Kao (KAOCF) ROCE % : 13.87% (As of Dec. 2024)

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What is Kao ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Kao's annualized ROCE % for the quarter that ended in Dec. 2024 was 13.87%.

Kao ROCE % Historical Data

The historical data trend for Kao's ROCE % 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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Kao ROCE % Chart

Kao Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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14.97

11.55

8.57

5.11

11.25

Kao Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															3.13	7.64	11.69	13.03	13.87

Kao ROCE % Calculation

Kao's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	1008.45	/	( ( (12291.482 - 3194.397)	+	(12139.554 - 3313.086) )	/ 2 )
	=	1008.45	/	( (9097.085	+	8826.468)	/ 2 )
	=	1008.45	/	8961.7765
	=	11.25 %

Kao's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	1236.688	/	( ( (12314.318 - 3311.429)	+	(12139.554 - 3313.086) )	/ 2 )
	=	1236.688	/	( ( 9002.889	+	8826.468 )	/ 2 )
	=	1236.688	/	8914.6785
	=	13.87 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Kao (OTCPK:KAOCF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Kao ROCE % Related Terms

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Kao Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kao Corp (OTCPK:KAOCF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KAOOY:USA 4452:Japan KAO:Germany

Address

14-10, Nihonbashi Kayabacho 1-chome, Chuo-ku, Tokyo, JPN, 103-8210

Website

http://www.kao.com

Kao is the largest household and personal care product manufacturer in Japan with a footprint across Asia, Europe, and the Americas. Japan remains its largest market, contributing about 50% of sales and operating profits with several leading brands including Attack and Biore. Initially a soap producer established in the 1890s, Kao has expanded into cosmetics, disposable hygiene products, and chemicals, in addition to its home care and toiletry products. Asia, the largest overseas market contributes around 15% of group sales. Kao has also acquired several Western skin and haircare brands including Jergens, John Frieda, Curel, Molton Brown, and the latest, Oribe.