NEC Networks & System Integration (TSE:1973) ROCE % : 25.81% (As of Mar. 2024)

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What is NEC Networks & System Integration 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. NEC Networks & System Integration's annualized ROCE % for the quarter that ended in Mar. 2024 was 25.81%.

NEC Networks & System Integration ROCE % Historical Data

The historical data trend for NEC Networks & System Integration'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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NEC Networks & System Integration ROCE % Chart

NEC Networks & System Integration Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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8.60

16.08

14.23

12.74

13.22

NEC Networks & System Integration Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															27.08	2.71	11.56	13.62	25.81

NEC Networks & System Integration ROCE % Calculation

NEC Networks & System Integration'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 )
	=	24335	/	( ( (267000 - 86890)	+	(284897 - 96826) )	/ 2 )
	=	24335	/	( (180110	+	188071)	/ 2 )
	=	24335	/	184090.5
	=	13.22 %

NEC Networks & System Integration'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 )
	=	47456	/	( ( (254661 - 74961)	+	(284897 - 96826) )	/ 2 )
	=	47456	/	( ( 179700	+	188071 )	/ 2 )
	=	47456	/	183885.5
	=	25.81 %

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

NEC Networks & System Integration (TSE:1973) 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.

NEC Networks & System Integration ROCE % Related Terms

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NEC Networks & System Integration (TSE:1973) Business Description

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Address

2-6-1 Koraku, Bunkyo-ku, Iidabashi First Tower, Tokyo, JPN, 112-8560

Website

http://www.nesic.co.jp

NEC Networks and System Integration Corp provides a variety of information technology, or IT, services. The company also sells IT products, which include servers, video conferencing systems, network systems, security systems, and software. The firm's range of services includes office space design, cloud computing, communication, networks, security, energy conservation, public IT infrastructure, and supporting services. More revenue comes from the sale of network-related products and services than any other IT product or service. The vast majority of revenue comes from Japan.

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