Nippon Gear Co (TSE:6356) ROCE % : 30.58% (As of Dec. 2023)

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What is Nippon Gear 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 Gear Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 30.58%.

Nippon Gear Co ROCE % Historical Data

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

Nippon Gear Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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5.81

6.85

4.97

4.87

10.18

Nippon Gear Co Quarterly Data
	Mar19	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															18.25	9.92	17.85	13.68	30.58

Nippon Gear Co ROCE % Calculation

Nippon Gear Co's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	1009.359	/	( ( (11365.227 - 1712.07)	+	(12716.194 - 2541.466) )	/ 2 )
	=	1009.359	/	( (9653.157	+	10174.728)	/ 2 )
	=	1009.359	/	9913.9425
	=	10.18 %

Nippon Gear Co'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 )
	=	3369.608	/	( ( (13201.633 - 2441.351)	+	(14100.312 - 2824.978) )	/ 2 )
	=	3369.608	/	( ( 10760.282	+	11275.334 )	/ 2 )
	=	3369.608	/	11017.808
	=	30.58 %

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

Nippon Gear Co (TSE:6356) 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.

Nippon Gear Co ROCE % Related Terms

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Nippon Gear Co (TSE:6356) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nippon Gear Co Ltd (TSE:6356) » Definitions » ROCE %

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Address

7 Kirihara-Cho, Kanagawa-Ken, Fujisawa, JPN, 252-0811

Website

http://www.nippon-gear.jp

Nippon Gear Co Ltd is engaged in the design, production, and sale of valve actuators, high-speed gear drivers, mixers, screw jacks, monitoring equipment, data communication equipment, control equipment, and software. It offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, wastewater treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries.

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