Socionext (TSE:6526) ROCE % : 23.30% (As of Mar. 2024)

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What is Socionext 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. Socionext's annualized ROCE % for the quarter that ended in Mar. 2024 was 23.30%.

Socionext ROCE % Historical Data

The historical data trend for Socionext'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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Socionext ROCE % Chart

Socionext Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

1.87

9.73

21.43

28.95

Socionext Quarterly Data
	Mar21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial					18.17	35.33	28.23	29.48	23.30

Socionext ROCE % Calculation

Socionext's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	35510	/	( ( (193945 - 82338)	+	(186840 - 53094) )	/ 2 )
	=	35510	/	( (111607	+	133746)	/ 2 )
	=	35510	/	122676.5
	=	28.95 %

Socionext's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	30264	/	( ( (177658 - 51655)	+	(186840 - 53094) )	/ 2 )
	=	30264	/	( ( 126003	+	133746 )	/ 2 )
	=	30264	/	129874.5
	=	23.30 %

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

Socionext (TSE:6526) 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.

Socionext ROCE % Related Terms

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Socionext (TSE:6526) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Socionext Inc (TSE:6526) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2-10-23 Shin-Yokohama, Kanagawa Prefecture (Nomura Real Estate Shin-Yokohama Building), Kohoku-ku, Yokohama, JPN, 222-0033

Website

https://www.socionext.com

Socionext Inc is engaged in the design, development and sales of system on chip as a fabless supplier.

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