Zenhoren Co (TSE:5845) ROCE % : 10.13% (As of Dec. 2023)

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What is Zenhoren 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. Zenhoren Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.13%.

Zenhoren Co ROCE % Historical Data

The historical data trend for Zenhoren 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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Zenhoren Co ROCE % Chart

Zenhoren Co Annual Data

Trend

Mar22

Mar23

ROCE %

29.14

46.34

Zenhoren Co Quarterly Data
	Mar22	Mar23	Jun23	Sep23	Dec23
ROCE %	-	-	104.80	96.05	10.13

Zenhoren Co ROCE % Calculation

Zenhoren 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 )
	=	1942	/	( ( (24723 - 19219)	+	(20425 - 17547) )	/ 2 )
	=	1942	/	( (5504	+	2878)	/ 2 )
	=	1942	/	4191
	=	46.34 %

Zenhoren 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 )
	=	468	/	( ( (21569 - 17585)	+	(20160 - 14905) )	/ 2 )
	=	468	/	( ( 3984	+	5255 )	/ 2 )
	=	468	/	4619.5
	=	10.13 %

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

Zenhoren Co (TSE:5845) 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.

Zenhoren Co ROCE % Related Terms

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Zenhoren Co (TSE:5845) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Zenhoren Co Ltd (TSE:5845) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

905 Ameku, Okinawa, Naha, JPN, 900-8608

Website

https://www.zenhoren.jp

Zenhoren Co Ltd is engaged in the Rent liability guarantee business.

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