Septeni Holdings Co (TSE:4293) ROC % : 6.49% (As of Mar. 2024)

View and export this data going back to 2001. Start your Free Trial

What is Septeni Holdings Co ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Septeni Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 6.49%.

As of today (2024-05-24), Septeni Holdings Co's WACC % is 3.51%. Septeni Holdings Co's ROC % is 1.68% (calculated using TTM income statement data). Septeni Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Septeni Holdings Co ROC % Historical Data

The historical data trend for Septeni Holdings Co's ROC % 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.

Septeni Holdings Co ROC % Chart

Septeni Holdings Co Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

ROC %

Get a 7-Day Free Trial

5.84

13.17

15.29

19.74

12.44

Septeni Holdings Co Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Mar24
ROC %	Get a 7-Day Free Trial															10.13	5.44	5.99	-11.16	6.49

Septeni Holdings Co ROC % Calculation

Septeni Holdings Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2022 is calculated as:

	ROC % (A: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2021 )	+	Invested Capital (A: Sep. 2022 ))	/ count )
=	6165.779 * ( 1 - 29.66% )	/	( (13820.243	+	55902.992)	/ 2 )
=	4337.0089486	/	34861.6175
=	12.44 %

where

	Invested Capital		(A: Sep. 2021 )
=	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	))
=	42011.169	-	15068.117	-	( 16912.931	-	max(0, 20328.724	-	33451.533	+	16912.931	))
=	13820.243

	Invested Capital		(A: Sep. 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	))
=	88731.112	-	17449.236	-	( 21439.029	-	max(0, 25206.388	-	40585.272	+	21439.029	))
=	55902.992

Septeni Holdings Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	5037.556 * ( 1 - 27.42% )	/	( (55463.266	+	57180.147)	/ 2 )
=	3656.2581448	/	56321.7065
=	6.49 %

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	))
=	88464.601	-	17025.038	-	( 20084.034	-	max(0, 23360.547	-	39336.844	+	20084.034	))
=	55463.266

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	99176.424	-	22770.116	-	( 26661.247	-	max(0, 29509.732	-	48735.893	+	26661.247	))
=	57180.147

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Septeni Holdings Co (TSE:4293) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Septeni Holdings Co's WACC % is 3.51%. Septeni Holdings Co's ROC % is 1.68% (calculated using TTM income statement data). Septeni Holdings 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 %, ROC % 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.

Septeni Holdings Co ROC % Related Terms

Thank you for viewing the detailed overview of Septeni Holdings Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Septeni Holdings Co (TSE:4293) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Septeni Holdings Co Ltd (TSE:4293) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Nishi 8-chome 17th No. 1 Sumitomo Fudosan, Shinjuku Grand Tower 30 Floor, Shinjuku-ku, Yubinbango, Tokyo, JPN, 160-6130

Website

http://www.septeni-holdings.co.jp

Septeni Holdings Co Ltd is a Japanese Internet marketing company, providing marketing support services based primarily on Internet ads. Its business activities are divided into two segments including Internet marketing business and Media content business. The Internet marketing business segment includes a social media business that provides marketing services for customers on various global social media networks. The company's media content segment plans, develops and operates media and content specializing in Manga art for mobile phone advertisements. Septeni's primary revenue source geographically is Japan and it also operates subsidiaries in the United Kingdom, South Korea, and the United States.

Septeni Holdings Co (TSE:4293) Headlines

No Headlines