Grasim Industries (Grasim Industries) ROCE % : 5.30% (As of Dec. 2023)

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What is Grasim 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. Grasim Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.30%.

Grasim Industries ROCE % Historical Data

The historical data trend for Grasim 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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Grasim Industries ROCE % Chart

Grasim Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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3.88

4.30

5.66

6.06

6.17

Grasim 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															8.65	5.51	5.68	4.43	5.30

Grasim Industries ROCE % Calculation

Grasim 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 )
	=	1942.342	/	( ( (37983.508 - 7597.424)	+	(40989.349 - 8452.163) )	/ 2 )
	=	1942.342	/	( (30386.084	+	32537.186)	/ 2 )
	=	1942.342	/	31461.635
	=	6.17 %

Grasim 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 )
	=	1875.888	/	( ( (44729.648 - 9336.475)	+	(0 - 0) )	/ 1 )
	=	1875.888	/	( ( 35393.173	+	0 )	/ 1 )
	=	1875.888	/	35393.173
	=	5.30 %

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

Grasim Industries (OTCPK:GRSXY) 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.

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Grasim Industries (Grasim Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Grasim Industries Ltd (OTCPK:GRSXY) » Definitions » ROCE %

Traded in Other Exchanges

GRASIM:India 500300:India

Address

Sudam Kalu Ahire Marg, A Wing, 2nd Floor, Aditya Birla Centre, Worli, Mumbai, MH, IND, 400030

Website

https://www.grasim.com

Grasim Industries Ltd is a cement and viscose staple fibre (VSF) manufacturing firm based in India. The activities of the group fall under the operating segments of Viscose, Chemicals, Cement, Financial Services, and Others. It derives key revenue from the Cement segment which covers products like Grey Cement, White Cement and allied products. The viscose segment includes products such as Viscose Staple Fibre, Wood Pulp and Viscose Filament Yarn. Through the Chemicals segment, the group offers Caustic soda, Allied chemicals and Epoxy. Geographically, the company has a business presence in India and other countries, of which maximum revenue is generated within India.

Grasim Industries (Grasim Industries) Headlines

From GuruFocus

Q3 2024 Grasim Industries Ltd Earnings Call Transcript

By GuruFocus Research • 02-12-2024