ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mizuho Leasing Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 1.19%.
As of today (2024-05-10), Mizuho Leasing Co's WACC % is 0.73%. Mizuho Leasing Co's ROIC % is 0.99% (calculated using TTM income statement data).
Mizuho Leasing Co 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.
Mizuho Leasing Co ROIC % Historical Data
The historical data trend for Mizuho Leasing Co's ROIC % 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.
Competitive Comparison of Mizuho Leasing Co's ROIC %
For the Credit Services subindustry, Mizuho Leasing Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mizuho Leasing Co's ROIC % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Mizuho Leasing Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Mizuho Leasing Co's ROIC % falls into.
Mizuho Leasing Co ROIC % Calculation
Mizuho Leasing Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Dec. 2023) 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.
Mizuho Leasing Co (TSE:8425) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Mizuho Leasing Co's WACC % is 0.73%. Mizuho Leasing Co's ROIC % is 0.99% (calculated using TTM income statement data).
Mizuho Leasing Co 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.
Mizuho Leasing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % 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.
Mizuho Leasing Co ROIC % Related Terms
Thank you for viewing the detailed overview of Mizuho Leasing Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mizuho Leasing Co Ltd is a Japanese firm which provides total financial services to a range of customers from large companies to small and medium-sized companies. The company has four segments namely Leasing, Installment Sales, Loans and Other. The Leasing segment is engaged in leasing and renting services for industrial machinery, transportation equipment, and information-related equipment. Installment Sales segment is engaged in installment sales of production equipment, construction and engineering machinery, and commercial equipment. Loans segment is engaged in corporate finance, vessel finance, and factoring services. Other segment is engaged in investing in securities that are held for the purpose of generating operational revenues, as well as engaged in assurance services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:8425 has been successfully added to your 