Nippon Denko Co (TSE:5563) ROCE % : 6.92% (As of Sep. 2024)

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What is Nippon Denko 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. Nippon Denko Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 6.92%.

Nippon Denko Co ROCE % Historical Data

The historical data trend for Nippon Denko 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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Nippon Denko Co ROCE % Chart

Nippon Denko Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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4.17

8.69

13.74

4.24

6.34

Nippon Denko Co 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															6.92	0.42	6.25	6.92	12.20

Nippon Denko Co ROCE % Calculation

Nippon Denko Co'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 )
	=	5339	/	( ( (101015 - 16090)	+	(102200 - 18817) )	/ 2 )
	=	5339	/	( (84925	+	83383)	/ 2 )
	=	5339	/	84154
	=	6.34 %

Nippon Denko Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	5720	/	( ( (97729 - 15381)	+	(100559 - 17560) )	/ 2 )
	=	5720	/	( ( 82348	+	82999 )	/ 2 )
	=	5720	/	82673.5
	=	6.92 %

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

Nippon Denko Co (TSE:5563) 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.

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Nippon Denko Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Nippon Denko Co Ltd (TSE:5563) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4-16,1-chome, Yaesu, 4th Floor, Tokyo Tatemono Yaesu Building, Chuo-ku, Tokyo, JPN, 103-8282

Website

http://www.nippondenko.co.jp

Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.

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