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DWANGO Co., (TSE:3715) ROIC % : 10.44% (As of Jun. 2014)


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What is DWANGO 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 %. DWANGO Co.,'s annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2014 was 10.44%.

As of today (2024-05-16), DWANGO Co.,'s WACC % is 1.96%. DWANGO Co.,'s ROIC % is 19.32% (calculated using TTM income statement data). DWANGO Co., generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


DWANGO Co., ROIC % Historical Data

The historical data trend for DWANGO 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.

DWANGO Co., ROIC % Chart

DWANGO Co., Annual Data
Trend Sep08 Sep09 Sep10 Sep11 Sep12 Sep13
ROIC %
Get a 7-Day Free Trial 5.24 15.21 10.13 12.86 15.13

DWANGO Co., Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 10.41 11.16 23.75 11.42 10.44

Competitive Comparison of DWANGO Co.,'s ROIC %

For the Information Technology Services subindustry, DWANGO 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.


DWANGO Co.,'s ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, DWANGO Co.,'s ROIC % distribution charts can be found below:

* The bar in red indicates where DWANGO Co.,'s ROIC % falls into.



DWANGO Co., ROIC % Calculation

DWANGO Co.,'s annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2013 is calculated as:

ROIC % (A: Sep. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2012 ) + Invested Capital (A: Sep. 2013 ))/ count )
=2130.724 * ( 1 - -6.37% )/( (14512.897 + 15455.99)/ 2 )
=2266.4511188/14984.4435
=15.13 %

where

Invested Capital(A: Sep. 2012 )
=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))
=24653.007 - 3975.785 - ( 6164.325 - max(0, 6003.466 - 14754.383+6164.325))
=14512.897

Invested Capital(A: Sep. 2013 )
=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))
=28853.586 - 4700.092 - ( 8697.504 - max(0, 7367.157 - 18297.582+8697.504))
=15455.99

DWANGO Co.,'s annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2014 is calculated as:

ROIC % (Q: Jun. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2014 ) + Invested Capital (Q: Jun. 2014 ))/ count )
=4369.496 * ( 1 - 55.32% )/( (18594.026 + 18814.133)/ 2 )
=1952.2908128/18704.0795
=10.44 %

where

Invested Capital(Q: Mar. 2014 )
=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))
=31586.824 - 2457.38 - ( 10535.418 - max(0, 8053.185 - 20724.059+10535.418))
=18594.026

Invested Capital(Q: Jun. 2014 )
=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))
=32558.859 - 2570.215 - ( 11174.511 - max(0, 7841.415 - 21734.623+11174.511))
=18814.133

Note: The Operating Income data used here is four times the quarterly (Jun. 2014) 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.


DWANGO Co.,  (TSE:3715) 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, DWANGO Co.,'s WACC % is 1.96%. DWANGO Co.,'s ROIC % is 19.32% (calculated using TTM income statement data). DWANGO Co., generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. DWANGO Co., earns returns that do not match up to its cost of capital. It will destroy value as it grows.


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.


DWANGO Co., ROIC % Related Terms

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DWANGO Co., (TSE:3715) Business Description

Traded in Other Exchanges
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Address
DWANGO Co., Ltd. provides Internet content through cellular phones. The Company also plans, develops and manages network entertainment systems.

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