Daiwa Cycle Co (TSE:5888) ROCE % : 5.06% (As of Jan. 2024)

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What is Daiwa Cycle 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. Daiwa Cycle Co's annualized ROCE % for the quarter that ended in Jan. 2024 was 5.06%.

Daiwa Cycle Co ROCE % Historical Data

The historical data trend for Daiwa Cycle 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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Daiwa Cycle Co ROCE % Chart

Daiwa Cycle Co Annual Data

Trend

Jan22

Jan23

Jan24

ROCE %

7.61

19.35

19.54

Daiwa Cycle Co Quarterly Data
	Jan22	Jan23	Jul23	Oct23	Jan24
ROCE %	-	-	-	24.93	5.06

Daiwa Cycle Co ROCE % Calculation

Daiwa Cycle Co's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	791.455	/	( ( (5517.144 - 2241.165)	+	(7367.856 - 2543.108) )	/ 2 )
	=	791.455	/	( (3275.979	+	4824.748)	/ 2 )
	=	791.455	/	4050.3635
	=	19.54 %

Daiwa Cycle Co's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	215.564	/	( ( (6162.219 - 2463.818)	+	(7367.856 - 2543.108) )	/ 2 )
	=	215.564	/	( ( 3698.401	+	4824.748 )	/ 2 )
	=	215.564	/	4261.5745
	=	5.06 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Daiwa Cycle Co (TSE:5888) 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.

Daiwa Cycle Co ROCE % Related Terms

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Daiwa Cycle Co (TSE:5888) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Daiwa Cycle Co Ltd (TSE:5888) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1-12-38 Esaka-cho, 5th floor, Esaka Soliton Building, Suita-shi, Osaka, JPN, 564-0063

Website

https://www.daiwa-cycle.co.jp

Daiwa Cycle Co Ltd is engaged in the Sales of bicycles, bicycle parts and accessories, maintenance and repair services for bicycles.

Daiwa Cycle Co (TSE:5888) Headlines

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