Japan Metropolitan Fund Investment (TSE:8953) ROC % : 2.87% (As of Aug. 2023)

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What is Japan Metropolitan Fund Investment 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 %. Japan Metropolitan Fund Investment's annualized return on capital (ROC %) for the quarter that ended in Aug. 2023 was 2.87%.

As of today (2024-05-26), Japan Metropolitan Fund Investment's WACC % is 1.09%. Japan Metropolitan Fund Investment's ROC % is 2.87% (calculated using TTM income statement data). Japan Metropolitan Fund Investment 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.

Japan Metropolitan Fund Investment ROC % Historical Data

The historical data trend for Japan Metropolitan Fund Investment'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.

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Japan Metropolitan Fund Investment ROC % Chart

Japan Metropolitan Fund Investment Annual Data

Trend

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

ROC %

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3.16

3.10

3.17

2.78

2.95

Japan Metropolitan Fund Investment Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROC %	Get a 7-Day Free Trial															3.04	2.82	2.85	2.87	2.86

Japan Metropolitan Fund Investment ROC % Calculation

Japan Metropolitan Fund Investment's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2022 is calculated as:

	ROC % (A: Aug. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2021 )	+	Invested Capital (A: Aug. 2022 ))	/ count )
=	36502.927 * ( 1 - 0% )	/	( (1217503.512	+	1253553.637)	/ 2 )
=	36502.927	/	1235528.5745
=	2.95 %

where

	Invested Capital		(A: Aug. 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	))
=	1235720.64	-	5058.584	-	( 64815.529	-	max(0, 72598.893	-	85757.437	+	64815.529	))
=	1217503.512

	Invested Capital		(A: Aug. 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	))
=	1248964.047	-	5749.813	-	( 41232.64	-	max(0, 75387.529	-	65048.126	+	41232.64	))
=	1253553.637

Japan Metropolitan Fund Investment's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2023 is calculated as:

	ROC % (Q: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2023 )	+	Invested Capital (Q: Aug. 2023 ))	/ count )
=	36109.302 * ( 1 - 0% )	/	( (1253711.16	+	1262285.718)	/ 2 )
=	36109.302	/	1257998.439
=	2.87 %

where

	Invested Capital		(Q: Feb. 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	))
=	1249604.161	-	5633.065	-	( 45095.708	-	max(0, 76953.578	-	67213.514	+	45095.708	))
=	1253711.16

	Invested Capital		(Q: Aug. 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	))
=	1249926.145	-	5610.629	-	( 37370.321	-	max(0, 78896.417	-	60926.215	+	37370.321	))
=	1262285.718

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

Japan Metropolitan Fund Investment (TSE:8953) 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, Japan Metropolitan Fund Investment's WACC % is 1.09%. Japan Metropolitan Fund Investment's ROC % is 2.87% (calculated using TTM income statement data). Japan Metropolitan Fund Investment 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.

Japan Metropolitan Fund Investment ROC % Related Terms

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Japan Metropolitan Fund Investment (TSE:8953) Business Description

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GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Japan Metropolitan Fund Investment Corp (TSE:8953) » Definitions » ROC %

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JRFIF:USA

Address

Marunouchi 2-chome, Tokyo Building 7-3, Chiyoda-ku, Tokyo, JPN, 100-6420

Website

https://www.jmf-reit.com

Japan Metropolitan Fund Investment Corp is a Japanese real estate investment trust that specialises in retail properties. The company principally generates revenue from leasing properties to tenants, which include supermarkets, clothing and accessory stores, cosmetic shops, general merchandise stores, and entertainment venues. The company's properties are located domestically in urban and suburban areas, with approximately half in the Greater Tokyo metropolitan area and the remaining in Osaka, Nagoya and surrounding areas, and other major cities.

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