ARAYA INDUSTRIAL Co (TSE:7305) ROCE % : 6.72% (As of Dec. 2023)

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What is ARAYA INDUSTRIAL 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. ARAYA INDUSTRIAL Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.72%.

ARAYA INDUSTRIAL Co ROCE % Historical Data

The historical data trend for ARAYA INDUSTRIAL 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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ARAYA INDUSTRIAL Co ROCE % Chart

ARAYA INDUSTRIAL Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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8.14

5.02

5.60

11.43

13.04

ARAYA INDUSTRIAL 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															10.11	8.99	10.02	5.93	6.72

ARAYA INDUSTRIAL Co ROCE % Calculation

ARAYA INDUSTRIAL 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 )
	=	4651	/	( ( (52524 - 18219)	+	(54040 - 16997) )	/ 2 )
	=	4651	/	( (34305	+	37043)	/ 2 )
	=	4651	/	35674
	=	13.04 %

ARAYA INDUSTRIAL 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 )
	=	2624	/	( ( (55753 - 16917)	+	(56294 - 17046) )	/ 2 )
	=	2624	/	( ( 38836	+	39248 )	/ 2 )
	=	2624	/	39042
	=	6.72 %

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

ARAYA INDUSTRIAL Co (TSE:7305) 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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ARAYA INDUSTRIAL Co (TSE:7305) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » ARAYA INDUSTRIAL Co Ltd (TSE:7305) » Definitions » ROCE %

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Address

12-12 Minamisenba, Chuo-ku, Osaka, JPN, 542-0081

Website

http://www.araya-kk.co.jp

ARAYA INDUSTRIAL CO., Ltd. is engaged in the manufacturing and selling of high-quality, high-performance iron, stainless steel pipe and others by metal processing technology Roll Forming. Its product offering includes steel pipe, welfare equipment, rim for the bicycle, pipe cutting machine, pipe/sheet metal processing machine and other special purpose machines. The company's products are used in a wide range of fields including automobiles, motorcycles, bicycles, buildings, furniture, industrial machinery, welfare equipment, and logistics equipment.

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