Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) ROCE % : 29.30% (As of Mar. 2023)

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What is Emkay Taps and Cutting Tools 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. Emkay Taps and Cutting Tools's annualized ROCE % for the quarter that ended in Mar. 2023 was 29.30%.

Emkay Taps and Cutting Tools ROCE % Historical Data

The historical data trend for Emkay Taps and Cutting Tools'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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Emkay Taps and Cutting Tools ROCE % Chart

Emkay Taps and Cutting Tools Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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12.11

16.13

21.60

26.81

27.73

Emkay Taps and Cutting Tools Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23
ROCE %	Get a 7-Day Free Trial												31.42	28.96	24.58	26.35	29.30

Emkay Taps and Cutting Tools ROCE % Calculation

Emkay Taps and Cutting Tools'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 )
	=	567.674	/	( ( (2034.512 - 208.997)	+	(2568.386 - 299.202) )	/ 2 )
	=	567.674	/	( (1825.515	+	2269.184)	/ 2 )
	=	567.674	/	2047.3495
	=	27.73 %

Emkay Taps and Cutting Tools's ROCE % of for the quarter that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2023 )		(Q: Sep. 2022 )		(Q: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2023 )		(Q: Sep. 2022 )		(Q: Mar. 2023 )
	=	628.486	/	( ( (2241.115 - 219.835)	+	(2568.386 - 299.202) )	/ 2 )
	=	628.486	/	( ( 2021.28	+	2269.184 )	/ 2 )
	=	628.486	/	2145.232
	=	29.30 %

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

Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) 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.

Emkay Taps and Cutting Tools ROCE % Related Terms

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Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Emkay Taps and Cutting Tools Ltd (NSE:EMKAYTOOLS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Plot No. B-27 and B-27/1, MIDC Hingna, Industrial Estate, Nagpur, MH, IND, 440016

Website

https://www.etctl.com

Emkay Taps and Cutting Tools Ltd is engaged in the manufacturing and sale of taps and cutting tools. The company's operating segment includes the Manufacturing of Taps and Cutting Tools, the Production of Power through Windmills, and others. It generates maximum revenue from the Tools segment.

Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) Headlines

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