Nova System Co (TSE:5257) ROCE % : 8.78% (As of Jun. 2024)

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What is Nova System Co 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. Nova System Co's annualized ROCE % for the quarter that ended in Jun. 2024 was 8.78%.

Nova System Co ROCE % Historical Data

The historical data trend for Nova System Co'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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Nova System Co ROCE % Chart

Nova System Co Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

13.02

7.07

19.91

23.83

Nova System Co Quarterly Data
	Dec20	Dec21	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROCE %	Get a 7-Day Free Trial					13.09	26.28	17.41	26.09	8.78

Nova System Co ROCE % Calculation

Nova System Co'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 )
	=	492.127	/	( ( (2786.959 - 1059.296)	+	(3382.52 - 980.647) )	/ 2 )
	=	492.127	/	( (1727.663	+	2401.873)	/ 2 )
	=	492.127	/	2064.768
	=	23.83 %

Nova System Co's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Mar. 2024 )		(Q: Jun. 2024 )
	=	221.756	/	( ( (3647.607 - 1104.045)	+	(3557.509 - 1049.963) )	/ 2 )
	=	221.756	/	( ( 2543.562	+	2507.546 )	/ 2 )
	=	221.756	/	2525.554
	=	8.78 %

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

Nova System Co (TSE:5257) 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.

Nova System Co ROCE % Related Terms

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Nova System Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Nova System Co Ltd (TSE:5257) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-3-15 Edobori, Shinishihara Building 9th Floor, Nishi-ku, Osaka, Osaka-shi, JPN, 550-0002

Website

https://www.nova-system.com

Nova System Co Ltd is primarily involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business.

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