MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) ROCE % : 25.58% (As of Dec. 2023)

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What is MEDIROM Healthcare Technologies 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. MEDIROM Healthcare Technologies's annualized ROCE % for the quarter that ended in Dec. 2023 was 25.58%.

MEDIROM Healthcare Technologies ROCE % Historical Data

The historical data trend for MEDIROM Healthcare Technologies'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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MEDIROM Healthcare Technologies ROCE % Chart

MEDIROM Healthcare Technologies Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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2.01

-22.58

-13.61

6.18

1.74

MEDIROM Healthcare Technologies Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial						4.25	-11.48	25.15	-22.14	25.58

MEDIROM Healthcare Technologies ROCE % Calculation

MEDIROM Healthcare Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	0.399	/	( ( (50.012 - 26.995)	+	(47.57 - 24.73) )	/ 2 )
	=	0.399	/	( (23.017	+	22.84)	/ 2 )
	=	0.399	/	22.9285
	=	1.74 %

MEDIROM Healthcare Technologies's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	5.444	/	( ( (42.86 - 23.134)	+	(47.57 - 24.73) )	/ 2 )
	=	5.444	/	( ( 19.726	+	22.84 )	/ 2 )
	=	5.444	/	21.283
	=	25.58 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

MEDIROM Healthcare Technologies (NAS:MRM) 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.

MEDIROM Healthcare Technologies ROCE % Related Terms

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MEDIROM Healthcare Technologies (MEDIROM Healthcare Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » MEDIROM Healthcare Technologies Inc (NAS:MRM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-3-1 Daiba, Minato-ku, 16th Floor Tradepia Odaiba, Tokyo, JPN, 135-0091

Website

https://www.medirom.co.jp

MEDIROM Healthcare Technologies Inc provides health services. The company is a franchiser and operator of healthcare salons and operates in segments namely Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty Segment. The company generates a majority of its revenue from the Relaxation Salon business segment. Geographically, the company generates a maximum share of its revenue from Japan.