Nidec (TSE:6594) ROCE % : 2.73% (As of Mar. 2024)

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What is Nidec 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. Nidec's annualized ROCE % for the quarter that ended in Mar. 2024 was 2.73%.

Nidec ROCE % Historical Data

The historical data trend for Nidec'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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Nidec ROCE % Chart

Nidec Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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8.25

10.41

10.44

7.21

10.74

Nidec Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															-3.45	17.37	11.60	10.21	2.73

Nidec ROCE % Calculation

Nidec's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	224786	/	( ( (2872591 - 900407)	+	(3171535 - 956502) )	/ 2 )
	=	224786	/	( (1972184	+	2215033)	/ 2 )
	=	224786	/	2093608.5
	=	10.74 %

Nidec's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	59220	/	( ( (3107768 - 982179)	+	(3171535 - 956502) )	/ 2 )
	=	59220	/	( ( 2125589	+	2215033 )	/ 2 )
	=	59220	/	2170311
	=	2.73 %

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

Nidec (TSE:6594) 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.

Nidec ROCE % Related Terms

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Nidec (TSE:6594) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Nidec Corp (TSE:6594) » Definitions » ROCE %

Comparable Companies

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NNDNF:USA NJDCY:USA NIDEC:Mexico NIB:Germany NIB:Austria

Address

338 Kuzetonoshiro-cho, Minami-ku, Kyoto, JPN, 601-8205

Website

http://www.nidec.com

Nidec is a global leader of brushless DC motors. Brushless DC motors have advantages over other types of motors in power efficiency, silence, and durability. Nidec possesses the number-one market share in a wide variety of products, such as hard disk drive motors, optical disk drive motors, vibration motors on handsets, brushless motors for inverter air conditioners, and brushless motors for electric power steering on automobiles. It continues to benefit from the growing demand for power-efficient motors, driven by strengthening environmental regulations. Nidec sets an ambitious target to increase its revenue to JPY 3 trillion in fiscal 2025 from JPY 1.9 trillion in fiscal 2021.

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