Lanka Milk Foods (CWE) (COL:LMF.N0000) ROCE % : 18.38% (As of Dec. 2023)

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What is Lanka Milk Foods (CWE) 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. Lanka Milk Foods (CWE)'s annualized ROCE % for the quarter that ended in Dec. 2023 was 18.38%.

Lanka Milk Foods (CWE) ROCE % Historical Data

The historical data trend for Lanka Milk Foods (CWE)'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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Lanka Milk Foods (CWE) ROCE % Chart

Lanka Milk Foods (CWE) Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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0.12

5.22

7.66

8.78

14.77

Lanka Milk Foods (CWE) 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															14.17	6.64	12.45	23.50	18.38

Lanka Milk Foods (CWE) ROCE % Calculation

Lanka Milk Foods (CWE)'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 )
	=	2316.505	/	( ( (16733.674 - 2998.442)	+	(21126.464 - 3487.745) )	/ 2 )
	=	2316.505	/	( (13735.232	+	17638.719)	/ 2 )
	=	2316.505	/	15686.9755
	=	14.77 %

Lanka Milk Foods (CWE)'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 )
	=	4358.956	/	( ( (29464.664 - 5973.638)	+	(29629.858 - 5692.84) )	/ 2 )
	=	4358.956	/	( ( 23491.026	+	23937.018 )	/ 2 )
	=	4358.956	/	23714.022
	=	18.38 %

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

Lanka Milk Foods (CWE) (COL:LMF.N0000) 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.

Lanka Milk Foods (CWE) ROCE % Related Terms

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Lanka Milk Foods (CWE) (COL:LMF.N0000) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lanka Milk Foods (CWE) PLC (COL:LMF.N0000) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 579/1, Welisara, Ragama, LKA

Website

https://www.lmfgroup.lk

Lanka Milk Foods (CWE) PLC is engaged in the business of importing, packing, manufacturing, marketing, and distributing milk allied products. The company's operating segment includes Powdered Milk; Liquid Milk and Others, Agriculture and Trading. It generates maximum revenue from the Liquid Milk and Others segment. The Liquid Milk and Others segment includes the operating chain of packing and selling of UHT products, Daily, Ambewela Farm Fresh Milk, and fruit juice.

Lanka Milk Foods (CWE) (COL:LMF.N0000) Headlines

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