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Berg Earth Co (TSE:1383) ROIC % : 12.17% (As of Apr. 2024)


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What is Berg Earth Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Berg Earth Co's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2024 was 12.17%.

As of today (2024-12-14), Berg Earth Co's WACC % is 2.02%. Berg Earth Co's ROIC % is 0.76% (calculated using TTM income statement data). Berg Earth Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Berg Earth Co ROIC % Historical Data

The historical data trend for Berg Earth Co's ROIC % 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.

* Premium members only.

Berg Earth Co ROIC % Chart

Berg Earth Co Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.96 -4.97 -0.77 -1.09 1.00

Berg Earth Co Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.03 0.75 10.44 -21.98 12.17

Competitive Comparison of Berg Earth Co's ROIC %

For the Farm Products subindustry, Berg Earth Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Berg Earth Co's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Berg Earth Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Berg Earth Co's ROIC % falls into.



Berg Earth Co ROIC % Calculation

Berg Earth Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2023 is calculated as:

ROIC % (A: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Oct. 2022 ) + Invested Capital (A: Oct. 2023 ))/ count )
=76.614 * ( 1 - 42.69% )/( (4664.684 + 4156.879)/ 2 )
=43.9074834/4410.7815
=1.00 %

where

Invested Capital(A: Oct. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6074.44 - 1172.848 - ( 1096.682 - max(0, 2747.105 - 2984.013+1096.682))
=4664.684

Invested Capital(A: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5672.245 - 863.327 - ( 1002.293 - max(0, 2109.056 - 2761.095+1002.293))
=4156.879

Berg Earth Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2024 is calculated as:

ROIC % (Q: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2024 ) + Invested Capital (Q: Apr. 2024 ))/ count )
=753.52 * ( 1 - 31.2% )/( (4172.409 + 4344.658)/ 2 )
=518.42176/4258.5335
=12.17 %

where

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5192.174 - 748.557 - ( 889.318 - max(0, 1978.136 - 2249.344+889.318))
=4172.409

Invested Capital(Q: Apr. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6327.737 - 1294.436 - ( 752.977 - max(0, 2746.691 - 3435.334+752.977))
=4344.658

Note: The Operating Income data used here is four times the quarterly (Apr. 2024) data.

* 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.


Berg Earth Co  (TSE:1383) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Berg Earth Co's WACC % is 2.02%. Berg Earth Co's ROIC % is 0.76% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Berg Earth Co ROIC % Related Terms

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Berg Earth Co Business Description

Traded in Other Exchanges
N/A
Address
998-3361 Ehime Prefecture, Uwajima-shi Tsushima-cho Kita, Ehime, JPN, 798-3361
Berg Earth Co Ltd is a Japan-based agribusiness company, produces and sells vegetable seedlings in Japan. It principally offers grafted seedlings of fruits and vegetables. The company also purchases and sells crops and agricultural materials.

Berg Earth Co Headlines

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