Tata Technologies (NSE:TATATECH) ROCE % : 27.22% (As of Mar. 2024)

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What is Tata Technologies 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. Tata Technologies's annualized ROCE % for the quarter that ended in Mar. 2024 was 27.22%.

Tata Technologies ROCE % Historical Data

The historical data trend for Tata Technologies'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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Tata Technologies ROCE % Chart

Tata Technologies Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

19.23

14.76

24.78

28.32

28.46

Tata Technologies Quarterly Data
	Mar20	Mar21	Dec21	Mar22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial					26.83	34.14	-	31.02	27.22

Tata Technologies ROCE % Calculation

Tata Technologies's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	9509.6	/	( ( (52014.9 - 19734.1)	+	(55783.2 - 21228.4) )	/ 2 )
	=	9509.6	/	( (32280.8	+	34554.8)	/ 2 )
	=	9509.6	/	33417.8
	=	28.46 %

Tata Technologies's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	9406	/	( ( (0 - 0)	+	(55783.2 - 21228.4) )	/ 1 )
	=	9406	/	( ( 0	+	34554.8 )	/ 1 )
	=	9406	/	34554.8
	=	27.22 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Tata Technologies (NSE:TATATECH) 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.

Tata Technologies ROCE % Related Terms

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Tata Technologies (NSE:TATATECH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Tata Technologies Ltd (NSE:TATATECH) » Definitions » ROCE %

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Traded in Other Exchanges

544028:India

Address

Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune, MH, IND, 411 057

Website

https://www.tatatechnologies.com/in

Tata Technologies Ltd is a engineering services company offering product development and digital solutions, including turnkey solutions, to original equipment manufacturers (OEMs) and their tier-1 suppliers. It endeavors to create value for its clients by helping them develop safer products, and cleaner and improve the quality of life for their end-customers. It has deep domain expertise in the automotive industry and leverages this expertise to serve its clients in adjacent industries, such as aerospace and transportation and construction heavy machinery. As an organization, it brings together diverse teams from different parts of the world with multiple skill sets to collaborate in real time and solve complex engineering problems for its clients.

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