Highway Holdings (Highway Holdings) ROCE % : 8.84% (As of Dec. 2023)

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What is Highway Holdings 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. Highway Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.84%.

Highway Holdings ROCE % Historical Data

The historical data trend for Highway Holdings'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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Highway Holdings ROCE % Chart

Highway Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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-6.87

6.40

-4.99

5.35

-4.89

Highway Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															15.22	0.20	-50.06	-17.07	8.84

Highway Holdings ROCE % Calculation

Highway Holdings'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 )
	=	-0.477	/	( ( (14.859 - 5.182)	+	(13.883 - 4.061) )	/ 2 )
	=	-0.477	/	( (9.677	+	9.822)	/ 2 )
	=	-0.477	/	9.7495
	=	-4.89 %

Highway Holdings'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: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	0.788	/	( ( (12.693 - 3.774)	+	(14.414 - 5.505) )	/ 2 )
	=	0.788	/	( ( 8.919	+	8.909 )	/ 2 )
	=	0.788	/	8.914
	=	8.84 %

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

Highway Holdings (NAS:HIHO) 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.

Highway Holdings ROCE % Related Terms

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Highway Holdings (Highway Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Highway Holdings Ltd (NAS:HIHO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Level 18, Landmark North 39 Lung Sum Avenue, Suite No.1801, Sheung Shui, New Territories, Hong Kong, HKG

Website

https://www.highwayholdings.com

Highway Holdings Ltd is a holding company. The company is a manufacturer of metal, plastic, electric and electronic components for original equipment manufacturers (OEM) and contract manufacturers. Its operating segment includes Metal stamping and mechanical OEM and Electric OEM. The metal stamping segment focuses on the manufacturing and sale of metal parts and components. The company generates maximum revenue from the Metal stamping and mechanical OEM segment. Geographically, it derives a majority of its revenue from Europe and also has a presence in Hong Kong and China, North America, and Other Asian countries.

Executives

Zeff Capital, Lp

10 percent owner

400 S. MCCADDEN PL., LOS ANGELES CA 90020