Hindalco Industries (Hindalco Industries) ROCE % : 10.19% (As of Dec. 2023)

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What is Hindalco 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. Hindalco Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.19%.

Hindalco Industries ROCE % Historical Data

The historical data trend for Hindalco 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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Hindalco Industries ROCE % Chart

Hindalco Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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9.65

7.23

8.48

15.53

10.48

Hindalco Industries 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															5.21	9.21	10.50	10.20	10.19

Hindalco Industries ROCE % Calculation

Hindalco 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 )
	=	2047.37	/	( ( (29277.224 - 10150.467)	+	(27309.658 - 7348.921) )	/ 2 )
	=	2047.37	/	( (19126.757	+	19960.737)	/ 2 )
	=	2047.37	/	19543.747
	=	10.48 %

Hindalco Industries'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 )
	=	2052.512	/	( ( (27054.412 - 6912.122)	+	(0 - 0) )	/ 1 )
	=	2052.512	/	( ( 20142.29	+	0 )	/ 1 )
	=	2052.512	/	20142.29
	=	10.19 %

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

Hindalco Industries (OTCPK:HNDNF) 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.

Hindalco Industries ROCE % Related Terms

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Hindalco Industries (Hindalco Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Hindalco Industries Ltd (OTCPK:HNDNF) » Definitions » ROCE %

Traded in Other Exchanges

HINDALCO:India 500440:India

Address

Pandurang Budhkar Road, Birla Centurion, 6th & 7th Floor, Worli, Mumbai, MH, IND, 400030

Website

https://www.hindalco.com

Hindalco Industries Ltd extracts raw materials and produces and sells industrial metals in the below segments: Copper, Aluminum Upstream and Aluminium Downstream, Novelis, and all other Segment. The Copper segment purchases raw materials and produces continuous cast copper rods, copper cathodes, sulphuric acid, gold, and silver. The firm hedges its copper and other precious metals costs through futures contracts in an attempt to match commodity price changes between the time it purchases the raw materials and sells the finished products. The Aluminum segment mines bauxite and produces hydrate and alumina, aluminum, and aluminum-based products. The majority of Hindalco's revenue comes from India. The firm is also expanding internationally with sales and operations worldwide.

Hindalco Industries (Hindalco Industries) Headlines

From GuruFocus

Q3 2024 Hindalco Industries Ltd Earnings Call Transcript

By GuruFocus Research • 02-14-2024