SoftBank (TSE:9434) ROCE % : 12.71% (As of Sep. 2024)

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What is SoftBank 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. SoftBank's annualized ROCE % for the quarter that ended in Sep. 2024 was 12.71%.

SoftBank ROCE % Historical Data

The historical data trend for SoftBank'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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SoftBank ROCE % Chart

SoftBank Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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17.42

15.09

12.60

12.20

10.36

SoftBank Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															13.15	10.39	5.73	14.77	12.71

SoftBank ROCE % Calculation

SoftBank'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 )
	=	867327	/	( ( (14682181 - 6372638)	+	(15521906 - 7085286) )	/ 2 )
	=	867327	/	( (8309543	+	8436620)	/ 2 )
	=	867327	/	8373081.5
	=	10.36 %

SoftBank'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 )
	=	1136848	/	( ( (0 - 0)	+	(15469392 - 6522023) )	/ 1 )
	=	1136848	/	( ( 0	+	8947369 )	/ 1 )
	=	1136848	/	8947369
	=	12.71 %

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

SoftBank (TSE:9434) 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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SoftBank Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » SoftBank Corp (TSE:9434) » Definitions » ROCE %

Comparable Companies

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SFBQF:USA SOBKY:USA 3AG1:Germany

Address

1-7-1 Kaigan, Minato-ku, Tokyo, JPN, 105-7529

Website

https://www.softbank.jp

SoftBank is an established, telecommunications services provider in Japan owning a mobile network with around 50 million mobile customers and 24% market share. It also provides some fixed line services, which are mostly resold so are low margin. The company also owns 32.4% of LY Corp, and SoftBank and LY Corp each own 32% of PayPay so SoftBank consolidates PayPay. SoftBank Group sold 33.5% of the SoftBank Corp in an IPO in 2018 and sold down further to a 42% holding in 2020.

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