ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bunka Shutter Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 7.01%.
As of today (2024-05-13), Bunka Shutter Co's WACC % is 1.98%. Bunka Shutter Co's ROIC % is 6.50% (calculated using TTM income statement data).
Bunka Shutter 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.
Bunka Shutter Co ROIC % Historical Data
The historical data trend for Bunka Shutter 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 Bunka Shutter Co's ROIC %
For the Building Products & Equipment subindustry, Bunka Shutter 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.
Bunka Shutter Co's ROIC % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Bunka Shutter Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Bunka Shutter Co's ROIC % falls into.
Bunka Shutter Co ROIC % Calculation
Bunka Shutter 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.
Bunka Shutter Co (TSE:5930) 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, Bunka Shutter Co's WACC % is 1.98%. Bunka Shutter Co's ROIC % is 6.50% (calculated using TTM income statement data).
Bunka Shutter 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.
Bunka Shutter 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.
Bunka Shutter Co ROIC % Related Terms
Thank you for viewing the detailed overview of Bunka Shutter Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Bunka Shutter Co Ltd is a building materials company that manufactures and sells shutters and construction materials in five diversified business segments. Bunka Shutter is based in Japan and primarily produces products such as light shutters, heavy-duty shutters for large-scale commercial facilities, window shutters, and sliding doors. Its second segment, construction materials, produces exterior products. Bunka operates a service business and a separate reform business, both focused on repair and maintenance services, and a refurbishment business. Lastly, the "other" business segment consists of a water sealing business, solar power business, and travel agency services. The company produces most of its revenue in Japan.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:5930 has been successfully added to your 