WIN-Partners Co (TSE:3183) ROIC % : 19.14% (As of Dec. 2023)

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What is WIN-Partners Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. WIN-Partners Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 19.14%.

As of today (2024-05-21), WIN-Partners Co's WACC % is 2.19%. WIN-Partners Co's ROIC % is 16.13% (calculated using TTM income statement data). WIN-Partners 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.

WIN-Partners Co ROIC % Historical Data

The historical data trend for WIN-Partners 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.

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WIN-Partners Co ROIC % Chart

WIN-Partners Co Annual Data

Trend

Mar12

Mar13

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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36.19

25.60

21.91

21.52

17.14

WIN-Partners Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															17.93	19.95	11.41	14.23	19.14

Competitive Comparison of WIN-Partners Co's ROIC %

For the Medical Distribution subindustry, WIN-Partners 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.

WIN-Partners Co's ROIC % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, WIN-Partners Co's ROIC % distribution charts can be found below:

* The bar in red indicates where WIN-Partners Co's ROIC % falls into.

WIN-Partners Co ROIC % Calculation

WIN-Partners Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	2470.073 * ( 1 - 30.48% )	/	( (10172.961	+	9868.271)	/ 2 )
=	1717.1947496	/	10020.616
=	17.14 %

where

	Invested Capital		(A: Mar. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	41564.997	-	15819.166	-	( 15572.87	-	max(0, 18698.56	-	34745.828	+	15572.87	))
=	10172.961

	Invested Capital		(A: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	43883.327	-	17243.31	-	( 16771.746	-	max(0, 19884.049	-	38671.843	+	16771.746	))
=	9868.271

WIN-Partners Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2903.884 * ( 1 - 32.03% )	/	( (10108.819	+	10520.696)	/ 2 )
=	1973.7699548	/	10314.7575
=	19.14 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	42277.029	-	15658.471	-	( 16509.739	-	max(0, 18767.808	-	36778.121	+	16509.739	))
=	10108.819

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	44433.969	-	17082.87	-	( 16830.403	-	max(0, 20407.732	-	38869.946	+	16830.403	))
=	10520.696

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

WIN-Partners Co (TSE:3183) 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, WIN-Partners Co's WACC % is 2.19%. WIN-Partners Co's ROIC % is 16.13% (calculated using TTM income statement data). WIN-Partners 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. WIN-Partners 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.

WIN-Partners Co ROIC % Related Terms

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WIN-Partners Co (TSE:3183) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » WIN-Partners Co Ltd (TSE:3183) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

2-2-1 Kyobashi, Chuoku, 21st Floor, Kyobashi Edogrand, Tokyo, JPN, 104-0031

Website

http://www.win-partners.co.jp

WIN-Partners Co Ltd is engaged in the healthcare sector. The company provides medical devices to Japan's medical institutions. Its products offerings are Cardiovascular device, Insulin Pump, X-ray Angio System, Carotid Artery Stent, Stent Graft, among others.

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