Adinath Textiles (BOM:514113) ROCE % : 27.81% (As of Dec. 2023)

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What is Adinath Textiles 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. Adinath Textiles's annualized ROCE % for the quarter that ended in Dec. 2023 was 27.81%.

Adinath Textiles ROCE % Historical Data

The historical data trend for Adinath Textiles'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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Adinath Textiles ROCE % Chart

Adinath Textiles Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-32.09

0.24

27.64

16.42

29.63

Adinath Textiles 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															28.79	26.70	20.74	12.48	27.81

Adinath Textiles ROCE % Calculation

Adinath Textiles'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 )
	=	6.831	/	( ( (34.723 - 15.079)	+	(36.976 - 10.517) )	/ 2 )
	=	6.831	/	( (19.644	+	26.459)	/ 2 )
	=	6.831	/	23.0515
	=	29.63 %

Adinath Textiles'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 )
	=	7.692	/	( ( (38.804 - 11.144)	+	(0 - 0) )	/ 1 )
	=	7.692	/	( ( 27.66	+	0 )	/ 1 )
	=	7.692	/	27.66
	=	27.81 %

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

Adinath Textiles (BOM:514113) 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.

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Adinath Textiles (BOM:514113) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Adinath Textiles Ltd (BOM:514113) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

Chandigarh Road, P.O. Sahabana, Village Bholapur, Ludhiana, PB, IND, 141123

Website

https://www.adinathtextiles.com

Adinath Textiles Ltd is an India-based company engaged in the spinning of worsted and spun yarns. It has manufacturing set up base in Ludhiana in the state of Punjab. It has devoted the principal part of its production capacity to Job works. In addition, the company has taken up the trading activities to avail of the available opportunities. The company has only one segment including the manufacturing of Acrylic and worsted yarn.

Adinath Textiles (BOM:514113) Headlines

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