AR Advanced Technology (TSE:5578) ROCE % : 17.36% (As of Feb. 2024)

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What is AR Advanced Technology 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. AR Advanced Technology's annualized ROCE % for the quarter that ended in Feb. 2024 was 17.36%.

AR Advanced Technology ROCE % Historical Data

The historical data trend for AR Advanced Technology'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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AR Advanced Technology ROCE % Chart

AR Advanced Technology Annual Data

Trend

Aug21

Aug22

Aug23

ROCE %

52.26

41.51

34.80

AR Advanced Technology Quarterly Data
	Aug21	Aug22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial			-	45.38	25.68	33.37	17.36

AR Advanced Technology ROCE % Calculation

AR Advanced Technology's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	496.704	/	( ( (2814.765 - 1708.467)	+	(4468.6 - 2719.886) )	/ 2 )
	=	496.704	/	( (1106.298	+	1748.714)	/ 2 )
	=	496.704	/	1427.506
	=	34.80 %

AR Advanced Technology's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	313.068	/	( ( (4283.294 - 2502.514)	+	(4438.008 - 2612.962) )	/ 2 )
	=	313.068	/	( ( 1780.78	+	1825.046 )	/ 2 )
	=	313.068	/	1802.913
	=	17.36 %

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

AR Advanced Technology (TSE:5578) 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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AR Advanced Technology (TSE:5578) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AR Advanced Technology Inc (TSE:5578) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-14-16 Shibuya, Shibuya Nomura Securities Building 8th floor, Shibuya-ku, Tokyo, JPN, 150-0002

Website

https://www.ari-jp.com

AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.

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