Power Solutions (TSE:4450) ROCE % : 15.21% (As of Dec. 2023)

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What is Power Solutions 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. Power Solutions's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.21%.

Power Solutions ROCE % Historical Data

The historical data trend for Power Solutions'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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Power Solutions ROCE % Chart

Power Solutions Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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27.27

7.26

20.12

22.22

21.90

Power Solutions Quarterly Data
	Dec18	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															18.54	20.45	11.27	35.09	15.21

Power Solutions ROCE % Calculation

Power Solutions'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 )
	=	630.069	/	( ( (3419.181 - 1124.66)	+	(4937.553 - 1476.767) )	/ 2 )
	=	630.069	/	( (2294.521	+	3460.786)	/ 2 )
	=	630.069	/	2877.6535
	=	21.90 %

Power Solutions'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	519.444	/	( ( (4791.997 - 1422.653)	+	(4937.553 - 1476.767) )	/ 2 )
	=	519.444	/	( ( 3369.344	+	3460.786 )	/ 2 )
	=	519.444	/	3415.065
	=	15.21 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Power Solutions (TSE:4450) 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.

Power Solutions ROCE % Related Terms

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Power Solutions (TSE:4450) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Power Solutions Ltd (TSE:4450) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Otemachi First Square East Tower, 1-5-1 Otemachi, Chiyoda-ku, Tokyo, JPN, 100-0004

Website

https://www.powersolutions.co.jp

Power Solutions Ltd specializes in corporate information technology activities. It is primarily engaged in the development, operation and maintenance of business consulting systems and outsourcing of business for asset management companies and other financial institutions.

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