GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Kamakura Shinsho Ltd (TSE:6184) » Definitions » ROC %

Kamakura Shinsho (TSE:6184) ROC % : 56.28% (As of Jan. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Kamakura Shinsho 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 %. Kamakura Shinsho's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 56.28%.

As of today (2024-06-08), Kamakura Shinsho's WACC % is 1.77%. Kamakura Shinsho's ROC % is 40.53% (calculated using TTM income statement data). Kamakura Shinsho 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.


Kamakura Shinsho ROC % Historical Data

The historical data trend for Kamakura Shinsho'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.

Kamakura Shinsho ROC % Chart

Kamakura Shinsho Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.43 12.82 26.97 42.60 42.37

Kamakura Shinsho Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROC % 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 50.50 27.90 43.21 29.19 56.28

Kamakura Shinsho ROC % Calculation

Kamakura Shinsho's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2024 is calculated as:

ROC % (A: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2023 ) + Invested Capital (A: Jan. 2024 ))/ count )
=816.22 * ( 1 - 35.11% )/( (1106.078 + 1394.1)/ 2 )
=529.645158/1250.089
=42.37 %

where

Invested Capital(A: Jan. 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))
=4317.699 - 695.148 - ( 2516.473 - max(0, 855.29 - 3615.842+2516.473))
=1106.078

Invested Capital(A: Jan. 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))
=4048.534 - 662.086 - ( 1992.348 - max(0, 819.141 - 3094.38+1992.348))
=1394.1

Kamakura Shinsho's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=1328.852 * ( 1 - 32.06% )/( (1814.241 + 1394.1)/ 2 )
=902.8220488/1604.1705
=56.28 %

where

Invested Capital(Q: Oct. 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))
=4065.152 - 528.276 - ( 1722.635 - max(0, 671.306 - 3202.388+1722.635))
=1814.241

Invested Capital(Q: Jan. 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))
=4048.534 - 662.086 - ( 1992.348 - max(0, 819.141 - 3094.38+1992.348))
=1394.1

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


Kamakura Shinsho  (TSE:6184) 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, Kamakura Shinsho's WACC % is 1.77%. Kamakura Shinsho's ROC % is 40.53% (calculated using TTM income statement data). Kamakura Shinsho 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.


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.


Kamakura Shinsho ROC % Related Terms

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


Kamakura Shinsho (TSE:6184) Business Description

Traded in Other Exchanges
N/A
Address
1-6-6 Yaesu, 7th Floor, Yaesu Center Building, Chuo- ku, Tokyo, JPN, 103-0028
Kamakura Shinsho Ltd operates portal sites in Japan. The firm publishes and lectures to communicate knowledge on funerals, altar, tombs, temples. It offers portal sites that gives information on funerals; and responds to various consultations by telephone and e-mails, as well as a mobile search with GPS functions to search the funeral companies and centers. The company also operates sites that offers information on joint funerals and farewell party; family funeral knowledge and family funeral expenses; introduction of expenses to direct funeral and cremation ceremonies. In addition, it operates sites for funeral and funeral night wear, and legal flowers. Further, the company operates sites that offers information on Buddhist altar/Buddhist information; Buddha statues and Buddhist teachers.

Kamakura Shinsho (TSE:6184) Headlines

No Headlines