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Senshu Electric Co (TSE:9824) ROIC % : 21.53% (As of Jan. 2024)


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What is Senshu Electric 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 %. Senshu Electric Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was 21.53%.

As of today (2024-05-12), Senshu Electric Co's WACC % is 5.53%. Senshu Electric Co's ROIC % is 18.83% (calculated using TTM income statement data). Senshu Electric 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.


Senshu Electric Co ROIC % Historical Data

The historical data trend for Senshu Electric 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.

* Premium members only.

Senshu Electric Co ROIC % Chart

Senshu Electric Co Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.77 7.84 12.89 18.26 17.85

Senshu Electric Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.32 18.71 17.70 17.14 21.53

Competitive Comparison of Senshu Electric Co's ROIC %

For the Electronics & Computer Distribution subindustry, Senshu Electric 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.


Senshu Electric Co's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Senshu Electric Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Senshu Electric Co's ROIC % falls into.



Senshu Electric Co ROIC % Calculation

Senshu Electric Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2023 is calculated as:

ROIC % (A: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Oct. 2022 ) + Invested Capital (A: Oct. 2023 ))/ count )
=8372 * ( 1 - 31.8% )/( (30339 + 33639)/ 2 )
=5709.704/31989
=17.85 %

where

Senshu Electric Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2024 is calculated as:

ROIC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=10592 * ( 1 - 31.34% )/( (33639 + 33906)/ 2 )
=7272.4672/33772.5
=21.53 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) 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.


Senshu Electric Co  (TSE:9824) 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, Senshu Electric Co's WACC % is 5.53%. Senshu Electric Co's ROIC % is 18.83% (calculated using TTM income statement data). Senshu Electric 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. Senshu Electric 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.


Senshu Electric Co ROIC % Related Terms

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Senshu Electric Co (TSE:9824) Business Description

Traded in Other Exchanges
N/A
Address
1-chome 4 no. 21, Minami- Kaneda, Suita-shi, Osaka, JPN, 564-0044
Senshu Electric Co Ltd engages in the wholesale business of electric wires and other electrical equipment. Its products include wires and cables, electronic restraints, information-related equipment, tapes, conduits, heating units, fan motors, delay lines, air cleaners, telecommunication systems, air conditioning equipment, household electrical appliances, office equipment and others. It also provides installation services; real estate rental business; management and operation of power generation business; and other businesses related to the sale and purchase of electricity.

Senshu Electric Co (TSE:9824) Headlines

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