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Nippon Sheet Glass Co (TSE:5202) ROIC % : -139.74% (As of Sep. 2024)


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What is Nippon Sheet Glass 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 %. Nippon Sheet Glass Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -139.74%.

As of today (2024-12-15), Nippon Sheet Glass Co's WACC % is 6.57%. Nippon Sheet Glass Co's ROIC % is 4.51% (calculated using TTM income statement data). Nippon Sheet Glass Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nippon Sheet Glass Co ROIC % Historical Data

The historical data trend for Nippon Sheet Glass 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.

Nippon Sheet Glass Co ROIC % Chart

Nippon Sheet Glass Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.59 1.85 1.52 6.20 2.65

Nippon Sheet Glass Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.67 6.23 1.65 134.92 -139.74

Competitive Comparison of Nippon Sheet Glass Co's ROIC %

For the Auto Parts subindustry, Nippon Sheet Glass 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.


Nippon Sheet Glass Co's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nippon Sheet Glass Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Nippon Sheet Glass Co's ROIC % falls into.



Nippon Sheet Glass Co ROIC % Calculation

Nippon Sheet Glass Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=35860 * ( 1 - 37.89% )/( (811995 + 872029)/ 2 )
=22272.646/842012
=2.65 %

where

Nippon Sheet Glass Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=21868 * ( 1 - 5552.25% )/( (0 + 853228)/ 1 )
=-1192298.03/853228
=-139.74 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


Nippon Sheet Glass Co  (TSE:5202) 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, Nippon Sheet Glass Co's WACC % is 6.57%. Nippon Sheet Glass Co's ROIC % is 4.51% (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.


Nippon Sheet Glass Co ROIC % Related Terms

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Nippon Sheet Glass Co Business Description

Traded in Other Exchanges
Address
Sumitomo Fudosan Mita Twin Building West Wing, 5-27, Mita 3-chome, Minato-Ku, Tokyo, JPN, 108-6321
Nippon Sheet Glass Co Ltd manufactures glass and glazing products for many industries. The architectural segment, which accounts for roughly 40% of the company's total revenue, sells flat glass and glazing products to commercial and residential markets and the solar energy sector. The automotive segment, which accounts for roughly half of the company's total revenue, supplies a wide range of automotive glazing to vehicle manufacturers for new vehicles and replacement markets. The technical glass segment sells thin glass and glass fiber products for small displays, lenses, printers, and engine timing belts. Nippon sells its products worldwide, with more than a third of its sales in Europe, roughly a third in Japan and the rest of Asia, and the remaining sales in the Americas.

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