ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tsubakimoto Kogyo Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 0.00%.
As of today (2025-03-28), Tsubakimoto Kogyo Co's WACC % is 4.85%. Tsubakimoto Kogyo Co's ROIC % is 7.84% (calculated using TTM income statement data).
Tsubakimoto Kogyo 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.
* 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.
Competitive Comparison of Tsubakimoto Kogyo Co's ROIC %
For the Industrial Distribution subindustry, Tsubakimoto Kogyo 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.
Tsubakimoto Kogyo Co's ROIC % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Tsubakimoto Kogyo Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Tsubakimoto Kogyo Co's ROIC % falls into.
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.
Tsubakimoto Kogyo Co (TSE:8052) 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, Tsubakimoto Kogyo Co's WACC % is 4.85%. Tsubakimoto Kogyo Co's ROIC % is 7.84% (calculated using TTM income statement data).
Tsubakimoto Kogyo 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.
Tsubakimoto Kogyo 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.
Tsubakimoto Kogyo Co ROIC % Related Terms
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Tsubakimoto Kogyo Co Ltd engages in the sale and supply of power transmission products, industrial equipment, and industrial materials. Its Power Transmission division provides transmission and reduction gear assemblies, sensors, actuators, servos and PLCs, chains, and belt conveyor systems. The Industrial Equipment division supplies automation and labor-reducing systems, robot systems, and food processing systems for materials handling, processing, testing, and environmental equipment. The Industrial Materials division provides functional materials, nonwoven fabrics, plastic raw materials, and plastic molded products, dispenser pumps. Its International Division exports components and equipment based on Japanese applied technology, and imports components and equipment from manufacturers.
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