Nippon Soda Co (TSE:4041) ROCE % : 10.49% (As of Dec. 2023)

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What is Nippon Soda Co 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. Nippon Soda Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.49%.

Nippon Soda Co ROCE % Historical Data

The historical data trend for Nippon Soda Co'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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Nippon Soda Co ROCE % Chart

Nippon Soda Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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5.25

4.94

5.46

9.54

12.61

Nippon Soda Co 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															12.56	10.60	11.89	8.09	10.49

Nippon Soda Co ROCE % Calculation

Nippon Soda Co'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 )
	=	24514	/	( ( (245585 - 57284)	+	(251350 - 50731) )	/ 2 )
	=	24514	/	( (188301	+	200619)	/ 2 )
	=	24514	/	194460
	=	12.61 %

Nippon Soda Co'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 )
	=	23056	/	( ( (263222 - 44573)	+	(276144 - 55396) )	/ 2 )
	=	23056	/	( ( 218649	+	220748 )	/ 2 )
	=	23056	/	219698.5
	=	10.49 %

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

Nippon Soda Co (TSE:4041) 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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Nippon Soda Co (TSE:4041) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Nippon Soda Co Ltd (TSE:4041) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-2-1, Ohtemachi, Chiyoda-ku, Tokyo, JPN, 100-8165

Website

https://www.nippon-soda.co.jp

Nippon Soda manufactures and sells chemical products and operates in three major and three minor segments. The chemicals segment sells caustic soda, sodium derivatives, and specialty chemicals, which are used to make household cleaning products and pharmaceuticals. The agrochemicals segment sells pesticides, fungicides, and herbicides to the agricultural industry. The trading segment offers chemicals, synthetic resins, and industrial machineries and devices. The company generates additional revenue from its minor segments: transportation, warehousing, and construction services. These segments are engaged in the transportation and warehousing of chemical products, as well as in plant construction and civil engineering services.

Nippon Soda Co (TSE:4041) Headlines

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