Hero MotoCorp (BOM:500182) ROCE % : 27.21% (As of Mar. 2024)

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What is Hero MotoCorp 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. Hero MotoCorp's annualized ROCE % for the quarter that ended in Mar. 2024 was 27.21%.

Hero MotoCorp ROCE % Historical Data

The historical data trend for Hero MotoCorp'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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Hero MotoCorp ROCE % Chart

Hero MotoCorp Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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31.59

24.36

18.55

22.76

27.92

Hero MotoCorp 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															25.63	22.41	29.23	31.20	27.21

Hero MotoCorp ROCE % Calculation

Hero MotoCorp'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 )
	=	51665.7	/	( ( (239170.3 - 60126.2)	+	(261527.9 - 70483.7) )	/ 2 )
	=	51665.7	/	( (179044.1	+	191044.2)	/ 2 )
	=	51665.7	/	185044.15
	=	27.92 %

Hero MotoCorp'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 )
	=	51988.8	/	( ( (0 - 0)	+	(261527.9 - 70483.7) )	/ 1 )
	=	51988.8	/	( ( 0	+	191044.2 )	/ 1 )
	=	51988.8	/	191044.2
	=	27.21 %

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

Hero MotoCorp (BOM:500182) 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.

Hero MotoCorp ROCE % Related Terms

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Hero MotoCorp (BOM:500182) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hero MotoCorp Ltd (BOM:500182) » Definitions » ROCE %

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HEROMOTOCO:India

Address

Nelson Mandela Road, The Grand Plaza, Plot No. 2, Vasant Kunj - Phase -II, New Delhi, IND, 110070

Website

https://www.heromotocorp.com

Hero MotoCorp Ltd is a motorcycle manufacturing company domiciled in India. The company manufactures and distributes motorcycles, scooters, and related spare parts. Sales of motorcycles comprise the largest contribution to consolidated revenue, followed by scooter sales. While Hero MotoCorp derives the vast majority of revenue from domestic operations, the company also has operations in Latin America, South Asia, Africa, and the Middle East. Hero MotoCorp principally manufactures and assembles production domestically. The Company primarily operates in the automotive segment. The automotive segment includes all activities related to development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories.

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