Machhar Industries (BOM:543934) ROCE % : 4.37% (As of Sep. 2023)

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What is Machhar Industries 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. Machhar Industries's annualized ROCE % for the quarter that ended in Sep. 2023 was 4.37%.

Machhar Industries ROCE % Historical Data

The historical data trend for Machhar Industries'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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Machhar Industries ROCE % Chart

Machhar Industries Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

5.10

3.44

9.02

11.79

5.46

Machhar Industries Semi-Annual Data
	Mar19	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial			-	-	2.01	8.52	4.37

Machhar Industries ROCE % Calculation

Machhar Industries'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 )
	=	6.683	/	( ( (138.548 - 23.351)	+	(150.972 - 21.261) )	/ 2 )
	=	6.683	/	( (115.197	+	129.711)	/ 2 )
	=	6.683	/	122.454
	=	5.46 %

Machhar Industries's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	5.66	/	( ( (150.972 - 21.261)	+	(148.612 - 19.228) )	/ 2 )
	=	5.66	/	( ( 129.711	+	129.384 )	/ 2 )
	=	5.66	/	129.5475
	=	4.37 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Machhar Industries (BOM:543934) 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.

Machhar Industries ROCE % Related Terms

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Machhar Industries (BOM:543934) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Machhar Industries Ltd (BOM:543934) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalna Road, Mondha Naka, City Pride Building, 1st Floor, FF-107, Above Domino’s, Aurangabad, MH, IND, 431001

Website

https://www.machharind.com

Machhar Industries Ltd operates with three distinct divisions: the explosive division, the transportation division, and Adblue (DEF). The company generates maximum revenue from the Transportation division.

Machhar Industries (BOM:543934) Headlines

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