Kawasaki Heavy Industries (NGO:7012) ROCE % : 12.34% (As of Dec. 2023)

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What is Kawasaki Heavy Industries ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Kawasaki Heavy Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.34%.

Kawasaki Heavy Industries ROCE % Historical Data

The historical data trend for Kawasaki Heavy Industries's ROCE % 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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Kawasaki Heavy Industries ROCE % Chart

Kawasaki Heavy Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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4.37

4.33

-1.06

3.05

7.48

Kawasaki Heavy Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															17.77	0.84	6.35	-15.60	12.34

Kawasaki Heavy Industries ROCE % Calculation

Kawasaki Heavy Industries's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	84646	/	( ( (2174630 - 1059723)	+	(2457725 - 1308661) )	/ 2 )
	=	84646	/	( (1114907	+	1149064)	/ 2 )
	=	84646	/	1131985.5
	=	7.48 %

Kawasaki Heavy Industries's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	134348	/	( ( (2556478 - 1480579)	+	(2663212 - 1561855) )	/ 2 )
	=	134348	/	( ( 1075899	+	1101357 )	/ 2 )
	=	134348	/	1088628
	=	12.34 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Kawasaki Heavy Industries (NGO:7012) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Kawasaki Heavy Industries (NGO:7012) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Kawasaki Heavy Industries Ltd (NGO:7012) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KWHIY:USA KWHIF:USA 7012:Japan KHE:Germany

Address

Kobe Crystal Tower, 1-3, Higashikawasaki-cho 1-chome, Chuo-ku, Kobe, JPN, 650-8680

Website

http://www.khi.co.jp

Kawasaki Heavy Industries Ltd is a diversified industrial company serving land, sea, and air markets. It produces heavy machinery, including multiple land vehicles, large tankers, submarines, energy systems, and aerospace equipment. In addition, the company works to produce environmental plants, industrial plants, precision machinery, robots, and infrastructure equipment. One aspect of the company focuses on manufacturing motorcycles under its well-known Kawasaki brand. Another focus and revenue generator is the division geared towards manufacturing commercial aircraft and jet engines. Sales generated in Asia account for the majority of total revenue, but the company does have a presence in the Americas and Europe.

Kawasaki Heavy Industries (NGO:7012) Headlines

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