Tata Steel (Tata Steel) ROCE % : 8.98% (As of Dec. 2023)

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What is Tata Steel 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. Tata Steel's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.98%.

Tata Steel ROCE % Historical Data

The historical data trend for Tata Steel'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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Tata Steel ROCE % Chart

Tata Steel Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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13.98

3.32

11.95

29.50

12.23

Tata Steel Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															4.48	10.73	7.72	-11.30	8.98

Tata Steel ROCE % Calculation

Tata Steel's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	2982.237	/	( ( (37465.166 - 11890.788)	+	(35010.817 - 11827.776) )	/ 2 )
	=	2982.237	/	( (25574.378	+	23183.041)	/ 2 )
	=	2982.237	/	24378.7095
	=	12.23 %

Tata Steel's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1829.912	/	( ( (32721.079 - 12347.789)	+	(0 - 0) )	/ 1 )
	=	1829.912	/	( ( 20373.29	+	0 )	/ 1 )
	=	1829.912	/	20373.29
	=	8.98 %

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

Tata Steel (OTCPK:TATLY) 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.

Tata Steel ROCE % Related Terms

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Tata Steel (Tata Steel) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Tata Steel Ltd (OTCPK:TATLY) » Definitions » ROCE %

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Traded in Other Exchanges

TATASTEEL:India 500470:India TTSTl:UK TTST:UK HWHG:Germany

Address

24 Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400 001

Website

https://www.tatasteel.com

Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strip. Its segments include Tata Steel India, Tata Steel Long Products, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and the Rest of the world.

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