Axita Cotton (BOM:542285) ROCE % : 41.04% (As of Mar. 2024)

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What is Axita Cotton 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. Axita Cotton's annualized ROCE % for the quarter that ended in Mar. 2024 was 41.04%.

Axita Cotton ROCE % Historical Data

The historical data trend for Axita Cotton'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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Axita Cotton ROCE % Chart

Axita Cotton Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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18.43

41.96

73.88

49.21

43.82

Axita Cotton Quarterly Data
	Mar18	Jun18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															51.68	52.92	55.53	27.10	41.04

Axita Cotton ROCE % Calculation

Axita Cotton'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 )
	=	281.05	/	( ( (808.039 - 223.572)	+	(983.756 - 285.333) )	/ 2 )
	=	281.05	/	( (584.467	+	698.423)	/ 2 )
	=	281.05	/	641.445
	=	43.82 %

Axita Cotton'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 )
	=	286.6	/	( ( (0 - 0)	+	(983.756 - 285.333) )	/ 1 )
	=	286.6	/	( ( 0	+	698.423 )	/ 1 )
	=	286.6	/	698.423
	=	41.04 %

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

Axita Cotton (BOM:542285) 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.

Axita Cotton ROCE % Related Terms

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Axita Cotton (BOM:542285) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Axita Cotton Ltd (BOM:542285) » Definitions » ROCE %

Traded in Other Exchanges

AXITA:India

Address

Kadi Thol Road, Servey No. 324 357 358, Borisana, Kadi, Mahesana, GJ, IND, 382715

Website

http://www.axitacotton.com

Axita Cotton Ltd is an India-based company engaged in the manufacturing, processing, and finishing of Kapas, cotton bales, and cotton seeds. It earns revenue from bales sales domestically, bales sales exports, and Shankar Kapasia.

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