RYUKYU ASTEEDA Sports Club Co (TSE:7364) ROIC % : -42.05% (As of Dec. 2023)

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What is RYUKYU ASTEEDA Sports Club 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 %. RYUKYU ASTEEDA Sports Club Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -42.05%.

As of today (2024-06-22), RYUKYU ASTEEDA Sports Club Co's WACC % is 5.79%. RYUKYU ASTEEDA Sports Club Co's ROIC % is -45.28% (calculated using TTM income statement data). RYUKYU ASTEEDA Sports Club Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

RYUKYU ASTEEDA Sports Club Co ROIC % Historical Data

The historical data trend for RYUKYU ASTEEDA Sports Club 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.

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RYUKYU ASTEEDA Sports Club Co ROIC % Chart

RYUKYU ASTEEDA Sports Club Co Annual Data

Trend

Dec18

Dec19

Dec21

Dec22

Dec23

ROIC %

-65.79

8.11

-115.98

-101.00

-45.83

RYUKYU ASTEEDA Sports Club Co Semi-Annual Data
	Dec18	Dec19	Jun20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial				-68.07	-95.59	-106.21	-48.08	-42.05

Competitive Comparison of RYUKYU ASTEEDA Sports Club Co's ROIC %

For the Entertainment subindustry, RYUKYU ASTEEDA Sports Club 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.

RYUKYU ASTEEDA Sports Club Co's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, RYUKYU ASTEEDA Sports Club Co's ROIC % distribution charts can be found below:

* The bar in red indicates where RYUKYU ASTEEDA Sports Club Co's ROIC % falls into.

RYUKYU ASTEEDA Sports Club Co ROIC % Calculation

RYUKYU ASTEEDA Sports Club Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-95.815 * ( 1 - -3.54% )	/	( (209.427	+	223.516)	/ 2 )
=	-99.206851	/	216.4715
=	-45.83 %

where

	Invested Capital		(A: Dec. 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	))
=	351.186	-	117.013	-	( 187.951	-	max(0, 289.93	-	314.676	+	187.951	))
=	209.427

	Invested Capital		(A: Dec. 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	))
=	286.158	-	157.366	-	( 103.424	-	max(0, 355.309	-	260.585	+	103.424	))
=	223.516

RYUKYU ASTEEDA Sports Club Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-90.65 * ( 1 - -3.89% )	/	( (224.401	+	223.516)	/ 2 )
=	-94.176285	/	223.9585
=	-42.05 %

where

	Invested Capital		(Q: Jun. 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	))
=	248.007	-	65.676	-	( 118.842	-	max(0, 255.017	-	212.947	+	118.842	))
=	224.401

	Invested Capital		(Q: Dec. 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	))
=	286.158	-	157.366	-	( 103.424	-	max(0, 355.309	-	260.585	+	103.424	))
=	223.516

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

RYUKYU ASTEEDA Sports Club Co (TSE:7364) 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, RYUKYU ASTEEDA Sports Club Co's WACC % is 5.79%. RYUKYU ASTEEDA Sports Club Co's ROIC % is -45.28% (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.

RYUKYU ASTEEDA Sports Club Co ROIC % Related Terms

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RYUKYU ASTEEDA Sports Club Co (TSE:7364) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » RYUKYU ASTEEDA Sports Club Co Ltd (TSE:7364) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1112-1 Minamiuebaru, Ocean View Matsuyama II, B1 Floor, Nakagamigun Nakagusukuson, Okinawa, JPN, 901-2424

Website

https://www.ryukyuasteeda.jp

RYUKYU ASTEEDA Sports Club Co Ltd is the provider of regional sports club management services. It is engaged in the management of triathlon teams, sports bar, table tennis class, management of table tennis product sales and others.

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