Vodafone Idea (NSE:IDEA) ROCE % : -1.37% (As of Dec. 2023)

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What is Vodafone Idea 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. Vodafone Idea's annualized ROCE % for the quarter that ended in Dec. 2023 was -1.37%.

Vodafone Idea ROCE % Historical Data

The historical data trend for Vodafone Idea'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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Vodafone Idea ROCE % Chart

Vodafone Idea Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-6.89

-30.93

-19.92

-5.89

-4.64

Vodafone Idea 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															-4.27	-5.38	-3.91	-3.95	-1.37

Vodafone Idea ROCE % Calculation

Vodafone Idea'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 )
	=	-65003	/	( ( (1940291 - 611339)	+	(2072427 - 600227) )	/ 2 )
	=	-65003	/	( (1328952	+	1472200)	/ 2 )
	=	-65003	/	1400576
	=	-4.64 %

Vodafone Idea'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 )
	=	-18748	/	( ( (1974290 - 606719)	+	(0 - 0) )	/ 1 )
	=	-18748	/	( ( 1367571	+	0 )	/ 1 )
	=	-18748	/	1367571
	=	-1.37 %

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

Vodafone Idea (NSE:IDEA) 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.

Vodafone Idea ROCE % Related Terms

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Vodafone Idea (NSE:IDEA) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Vodafone Idea Ltd (NSE:IDEA) » Definitions » ROCE %

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532822:India

Address

Pandurang Budhkar Marg, Birla Centurion, 10th Floor, Plot No. 794, B Wing, Century Mills Compound, Worli, Mumbai, MH, IND, 400 030

Website

https://www.myvi.in

Vodafone Idea Ltd is a telecommunications company that provides mobile services and operates under one segment namely Mobility services. Mobility services generates revenue from mobile services and constitutes the majority of overall company revenue. The company owns telecommunications infrastructure, such as fiber networks and mobile towers. The company generates the vast majority of its revenue in India.